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RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT Detailed Project Report on Besan (Gram Flour) Mill Prepared by: AGRI BUSINESS PROMOTION FACILITY

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RAJASTHAN AGRICULTURAL

COMPETITIVENESS PROJECT

Detailed Project Report on Besan

(Gram Flour) Mill

Prepared by:

AGRI BUSINESS PROMOTION FACILITY

Rajasthan Agricultural Competitiveness Project 1

Contents

Page

Executive Summary 2

Chapter 1: Introduction-Bengal Gram 8

Chapter 2: Technology advances and circumstances in Pulse Flour Milling 20

Chapter 3: Production and processing hubs/ clusters in Rajasthan 29

Chapter 4: Manufacturing process and technology benchmarking 31

Chapter 5: Appropriate technology options 39

Chapter 6: SWOT of technology 45

Chapter 7: Indicative project profile for Rajasthan 48

Chapter 8: Method of technology dissemination and adoption 75

References 77

Rajasthan Agricultural Competitiveness Project 2

Executive Summary

The development objective of Rajasthan Agriculture Competitiveness Project (RACP) is to sustainably

increase agriculture productivity and farmers’ incomes in several selected locations of Rajasthan. As a

part of this approach, several Farmer Producer Companies (FPCs) are being developed and supported

under the project. Each of these companies will have primary and/or secondary (value adding)

processing infrastructure (Farmer Common Services Centers (FCSCs)), services of which will be availed

by farmers of their cluster region. Broadly, these companies will aggregate produce of farmers,

process/value add and directly sell in bulk to processors/consumers. This, in turn, will enable farmers to

realize higher remuneration for their produce. In a nutshell, the envisaged FCSCs will have micro or

small scale milling/processing and packaging units to facilitate services to farmers.

Existing and upcoming agro and food processing units in the state play a highly important role in the

scheme of things, i.e. forward linkages in agriculture. Evidently, higher investments in agribusinesses

will bolster development and sustainability of FPCs and farmers thereto. In line with the approach,

RACP, through its Agri-Business Promotion Facility (ABPF), aims at:

Promoting agribusiness investments in the state

And providing incubation facilities to foster innovation & entrepreneurship

The objective of this report is scouting of technologies and suitable replicable models’ in Besan Milling

(Pulse Flour processing). Broadly, the report aims to provide some insights, to prospective

entrepreneurs and existing unit holders in the state on technological gaps identified in existing units, on

several technological advances in the industry on benchmarking technology and efficiency vis-à-vis

industry bests in other parts of the country and providing suitable replicable models for micro, small and

medium/large scale investors.

Notably, the global pulse flour market is primarily propelled by the rising consumption of various

pulse flours and bakery products in various regions. The rapidly growing demand for fast food

products in restaurants, cafes, and food chains in various developing and developed nations is

bolstering the demand for pulse flour milling. Besan is a high potential market in India with annual

production volume of over 5 million tonnes; i.e. over 50% of the approximately 10 million tonnes of

desi Chickpeas produced in India (which goes for grinding into Besan). However, there are unique

challenges that accompany pulse flour production, especially related to cleaning, milling, packaging,

testing and storage. The present thesis provides some important suggestions on the adoption of new

technologies to overcome such challenges.

Rajasthan Agricultural Competitiveness Project 3

Pulses are the edible seeds of plants in the legume family. The United Nations Food and Agriculture

Organization (FAO) recognizes 11 types of pulses: dry beans, dry broad beans, dry peas, chickpeas,

cow peas, pigeon peas, lentils, Bambara beans, vetches, lupins and pulses nes. Pulses are one of

the most cost-effective proteins around, enjoyed by people around the world as a food staple.

Bengal gram is a major pulse crop in India, widely grown for centuries and accounts for nearly 40

percent of the total Pulse production. India is the largest producer of Bengal gram in the world,

accounting for 61.65 percent of the total world area under Bengal gram and 68.13 percent of the total

world production (as per Year 2002 data). Bengal gram is widely appreciated as health food and as a

protein-rich supplement to cereal-based diets, especially for the poor in developing countries where

people are largely vegetarian or are unable to afford animal protein.

Rajasthan, currently, is the 2nd largest producer of Chickpea/Bengal Gram in India. There are 2 varieties

of Bengal gram grown in the state i.e. Early variety which is sown during the last week of October to the

last week of November and harvested from the 3rd week of March till the end of the month and Late

variety which is sown during last week of November to the last week of December. Late variety is

harvested from 3rd week of April to the end of the month. Major trading centers of Chana in the state

are Jaipur, Bikaner, Kota, Jodhpur, Sriganganagar, and Hanumangarh.

The global pulse flour market was at $17.02 billion in 2015 and is expected to reach $56.62 billion by

2024 according to a report issued in October by Grand View Research, San Francisco. The bakery and

snacks segment accounted for over a 90% share of the global pulse flour market in 2015. Pulse flours in

beverages may provide a suitable alternative for children who are lactose intolerant or are allergic to soy.

Pulses are a low-fat source and have high fiber content and a low glycemic index, according to the

report.

Chickpea flour accounted for over a 30% share in the global pulse flour market in 2015. Geographically,

Europe had over a 25% share of the global pulse flour market in terms of revenue in 2015. Other areas

should grow revenue through 2024 with CAGRs projected for Middle East and Africa (over 16%), Asia

Pacific (over 15%) and North America (13%).

In India, the use of whole chickpea for making flour depends largely on the type of plant used for

processing. It was observed that for flour making, the size of split chickpea is not important. The most

important factor identified in several surveys is the recovery rate. Flour millers often use desi type

chickpea of slightly lower quality than that used for making dal. Locally produced desi chickpea are

mostly used for making flour, although millers sometimes use imported ones. The colour of dal (often)

is not a needed quality trait for flour making.

Most of the besan mills are extended dal mills that sell first grade sell first grade chickpea split dal and

processing takes place for second grade and broken (khanda) to manufacture besan. The market

demand for besan largely depends on freshness, quality and fineness of grinding and the quality of besan

is of prime importance to the millers as the same impacts the sensory impact on the end product.

Rajasthan is the second largest producer of gram in the country and presents immense potential in

processing, polishing and packaging of gram/dal as well as preparing besan. Besan has great relevance in

the famous Rajasthan cuisine. From sweet to spicy, and from crispy to succulent, besan is used here in

Rajasthan Agricultural Competitiveness Project 4

as many delicious varieties as one can imagine. Some of these delicacies include Besan ke Gatte, Pittod,

Rajasthani Kadhi/Khaata, Mohan Thaal, Bhajiya, Bikaneri Bhujia, Mirchi-bada, etc.

A large majority of besan processing units are based in Jaipur and Bikaner districts. Some other units are

located in limited numbers at Jodhpur, Udaipur, Hanumangarh, Bharatpur, Kota and Nagaur districts.

Some of these mills also have besan processing units or alternatively supply their split dal and broken to

other units having besan processing.

In some food retail centres and in shopping malls in Jaipur, more prominent brands of dals and besan

like Tata I-Shakti, Fortune, Reliance, Shakti bhog, Rajdhani, etc are more visible on shelves. However,

some local brands are also available in these retail chains and equally popular in small retail shops. Some

of these brands include ‘AgroPure’ promoted by AgroPure Group (NCR), ‘Shri Balaji’ promoted by Shri

Balaji Dall Mill (Rajasthan), ‘Gangaur Besan’ promoted by Mantri Agro Industries (Rajasthan). Some

organic dal and besan brands are also available.

Scenario of pulse milling industry in the state is shown below:

1. Low capacity and huge machine footprint, difficult & time consuming changeovers & higher

operational & maintenance cost; manual operations and repetitive cleaning increase the dust

and bring down the hygiene levels throughout the plant.

2. Inadequate storage facilities

3. Inadequate cleaning equipment and facilities

4. Outdated pulverizers leading to low recovery of besan; to obtain required fineness of besan,

milling function and sieving could be repeated a few times; Quality aberrations in grinding and

sifting on several occasions.

5. High cost of up-gradation

6. Outdated and non-automatic technologies and engineering; also high power and labour costs

7. Inadequate or inefficient metal detector equipment; high level of rejection affecting yield and

profit margins of firms.

8. Most units have traditional machineries and automation at all levels of processing is fairly low

(except in some modern mills).

9. Packaging in most units is done manually; very few (bigger besan mills) have ventured into retail

sizes.

Loading split

Chickpea/Broken

Packing Sieving of Flour-

Besan

Grinding

Rajasthan Agricultural Competitiveness Project 5

Benchmarking the Pulse Flour manufacturing process in key clusters at Rajasthan

S. No. Process Traditional method (especially in micro units) in key clusters in Rajasthan

Modern Method/s in more advanced units

1 Raw Material Storage

In own or other private godowns Galvanized Silo Storage System

High tenacity Trevira fabric (for final product)

2 Raw Pulses Cleaning and Milling

Inadequate pre-cleaning and fine cleaning equipment and facilities

Modern pre-cleaner (drum sieve), magnet separators, separator classifiers, gravity separators, de-stoners, modern dryers, hullers and color sorter.

3 Besan Milling Section

Inadequate Magnetic Separators, Outdated Stone Mills/Hammer mills used for grinding, Outdated centrifugal separators

Modern Magnetic Separators

Modern disc mills, hammer mills and Pin Mills

Modern Centrifugal Separators

4 Wholesale and Retail Packaging

Manual Packaging methods; for retail packaging job work from service providers

Automatic Weighing and Bagging machine

Vertical Form Fill Seal machine

5 Testing and other support activities

Only basic testing in-house; outsource various other tests

Digital and IR Moisture Meter, hot air oven, ashing oven/muffle furnace, kjeldhal apparatus, soxhlet apparatus, centrifuge, vortex stirrer, sedimentation shaker, NIR grain analyzer, Universal lab sifter, pH meter, precision weighing scales, glassware and chemicals, etc

6 Support Equipment, Engineering and Automation

Often, sub-standard quality support equipment, engineering and low level of automation

Based on size, capacity and milling engineering the support structure and equipment need to be installed; should be robust and shock absorbent.

The plant layout should present a smooth, orderly flow of raw materials or ingredients through each manufacturing phase on to the storage of the finished product.

Process optimization refers to operate plant optimally with economic performance in terms of productivity and yields. It also avoids human errors. Scada systems are now integral part of flour mill industry.

The report outlines three project profiles that could be referred by entrepreneurs to select their most

suitable option. Broadly, one micro scale, one small scale and one medium scale investment option has

been showcased primarily to suit the investment capabilities of the entrepreneurs. Section 7.1, 7.2 and

7.3 of this chapter individually showcase the financial feasibility of these projects.

a. Profile 1 showcases a micro scale model that can be pursued as guiding model by small farmers

or individual entrepreneurs, farmer groups, farmer producer association/companies. The

technology proposed for this segment involves Mini Semi-Automatic 4 TPD capacity Besan

Milling unit which comprises of a Pulverizer, Centrifugal Filter, material handling equipment

Rajasthan Agricultural Competitiveness Project 6

and tanks, aspiration system, cabling and control panel, weighing machine and stitching

machine. The total cost of the complete set of Main P&M, on basis of some referred quotations

of leading suppliers in the segment, is Rs. 11.25 Lakhs. This cost is inclusive of taxes,

transportation, installation and commissioning charges.

b. Profile 2 showcases a small scale model that, can be pursued as guiding model by small scale

entrepreneurs, farmer producer association/companies. The technology proposed for this

segment involves Semi-Automatic 20 TPD Besan Milling unit which comprises of Magnetic

Separators, Pin Mill and Pulverizer, Centrifugal Separator, support structure, storage tanks and

material handling equipment, aspiration system, cabling and control panels and weighing and

bagging machine. The total cost of the complete set of Main P&M, on basis of some referred

quotations of leading suppliers in the segment, is Rs. 64.28 Lakhs. This cost is inclusive of taxes,

transportation, installation and commissioning charges.

c. Profile 3 showcases a small scale fully automatic model that, can be pursued as guiding model

by some small scale entrepreneurs or institutions. The technology proposed for this segment

involves Fully Automatic 50 TPD Besan Mill Plant. The main plant and machinery include

magnetic separators, Hammer Mill and Pulverizer, High Pressure Filters, complete support

structure, storage tanks and material handling equipment, aspiration system, cabling and control

panels, weighing and bagging machine and packing machine, pneumatics and automation

system and lab equipment. The total cost of the complete set of Main P&M, on basis of some

referred quotations of leading suppliers in the segment, is Rs. 264.39 Lakhs. The cost of

Utilities (Weighbridge, etc), on basis of some referred quotations of leading suppliers, is Rs.

25.00 Lakhs. This cost is inclusive of taxes, transportation, installation and commissioning

charges.

RACP-ABPF will undertake a combination of some initiatives to disseminate the suggested technologies

and models, which may broadly include:

Workshops for prospective entrepreneurs/groups, existing industry owners and BoDs of FPCs

Facilitate technology benchmarking exposure visits within and outside state for prospective

entrepreneurs/groups, existing industry owners and BoDs of FPCs

Seminars and Workshops in association with Industry Associations, Technical Institutes and

R&D Institutions

Technology Meets and Tie-ups with Technology Suppliers, Technical Institutes and experts

Facilitate through consultancy and business development services

Dissemination of success stories of units facilitated by ABPF through appropriate media

Dissemination through web portals and mobile applications

The models and business plans suggested in this report are broadly generic in nature, however involve:

technology profile

civil works requirement

raw material sourcing and logistic costs for sourcing raw material

capacity utilization for different scenarios

realistic assessment of investment and working capital needs

Rajasthan Agricultural Competitiveness Project 7

possible sources of funding

financial analysis

The suggested models and business plans are for optimal capacities which can be customized in

accordance to the scale, investment, technology needs of the entrepreneur. ABPF will further guide

entrepreneurs on statutory clearances needed for operating the business, required licenses, ways of

leveraging various government schemes/subsidies and several other aspects for effective technology

adoption. In order to increase the scale and potential adoption, ABPF shall pursue some or mix of

several initiatives, which may broadly include:

Investor road shows

B2B Meets

Establishing Mentor Network

Mentor-Mentee Workshops

Facilitating Access to Finance

Creating a robust knowledge base

Preparation of business plans

Review of business plans for funding through RACP

Rajasthan Agricultural Competitiveness Project 8

Chapter 1: Introduction-Bengal Gram

1.1. Introduction Pulses are the edible seeds of plants in the legume family. Pulses grow in pods and come in a variety of

shapes, sizes and colours. The United Nations Food and Agriculture Organization (FAO) recognizes 11

types of pulses: dry beans, dry broad beans, dry peas, chickpeas, cow peas, pigeon peas, lentils,

Bambara beans, vetches, lupins and pulses. Pulses are one of the most cost-effective proteins

around, enjoyed by people around the world as a food staple. Among pulses Bengal gram, also called

Chickpea or Gram (Cicer aritinum L.) in South Asia and Garbanzo bean in most of the developed world

is considered the third most important pulse in the world. Bengal gram is a major pulse crop in India,

widely grown for centuries and accounts for nearly 40 percent of the total Pulse production. India

is the largest producer of Bengal gram in the world, accounting for 61.65 percent of the total world area

under Bengal gram and 68.13 percent of the total world production (as per Year 2002 data). Bengal

gram is widely appreciated as health food and as a protein-rich supplement to cereal-based diets,

especially for the poor in developing countries, where people are largely vegetarian or are unable to

afford animal protein. The pulse proteins are rich in lysine and have low Sulphur containing amino

acids. Pulses like Bengal Gram also offer the most practical means of eradicating protein malnutrition

among vegetarian children and nursing mothers. And hence, Bengal gram holds a significant place in

human diet in the country.

Origin of Gram

Bengal gram is known to us since ancient times and is one of the oldest pulses known and was

cultivated in Asia and Europe. According to Aykroid and Doughty (1964), the centre of origin of

Bengal gram is stated to be eastern Mediterranean, but it’s probable place of origin lies in the South-

Western Asia, i.e. countries lying to North-west of India such as Afghanistan and Persia. According to

De Candolle, the fact that gram has a Sanskrit name “Chanaka” indicates that the crop was under

cultivation in India longer than other countries in the world.

Table 1 Vernacular (name) prevailing in different states

Name of the State Local Name

Uttar Pradesh, Rajasthan, Bihar, Madhya Pradesh, Gujarat and Haryana

Chana

Punjab Chhole

West Bengal Chola

Orissa Boot

Assam Butmah

Andhra Pradesh Sanagalu

Maharashtra Harbara

Rajasthan Agricultural Competitiveness Project 9

Tamil Nadu Kadalai

Kerala Kadala

Karnataka Kadale

Nutritional Value

Table 2 Nutritional value of edible portion per 100 g of Bengal gram

Food Energy (In calorie)

Protein (In g)

Fat (In g)

Calcium ( In mg)

Iron (In mg)

Thiamin (In mg)

Riboflavin (In mg)

Niacin (In mg)

Vitamin C (In mg)

Vitamin A (In mg)

Bengal gram (whole)

360 17.1 5.3 202 10.2 0.3 0.15 2.9 3 189

Bengal gram (Dal)

372 20.8 5.6 56 9.1 0.48 0.18 2.4 1 129

Economic Aspect

Chana/Bengal Gram is the most important pulse crop of India contributing about 30 % of total pulse

acreage and about 40 % of total pulse production of the nation. It is mainly consumed as ‘Dal’ (split

cotyledons) and chhole. Many attractive dishes viz – sweets, snacks and namkeen are also prepared from

its flour called besan. Also eaten as whole fried or boiled and salted. Fresh green leaves (sag) are used as

vegetables and green grains as hare chhole or chholia. Straw of gram is an excellent fodder while both

husk and bits of ‘Dal’ are valuable cattle feed. Leaves consist of mallic and citric acid and are very useful

for stomach ailments and blood purifier.

1.2. Global Scenario-Production

India is ranked first in area and production (Year 2013 data) in the world, followed by Pakistan,

Australia and Iran. The highest productivity of 6120 kg/ha is observed in Israel followed by Yemen,

Canada and Egypt. The productivity in India is 920 kg/ha. The table below presents global ranking of

major chickpea producing countries in terms of area, production and yield:

Table 3 Chickpea: Global ranking in area, production and yield: major countries (Yr 2013)

Rank Country

Area

Country

Production

Country Yield Area % to World Prod.

% to World

I India 96.00 70.90 India 88.325 67.41 Israel 6120

II Pakistan 9.920 7.33 Australia 8.133 6.21 Yemen 2974

III Australia 5.736 4.24 Pakistan 7.510 5.73 Canada 2353

111 Iran 5.500 4.06 Turkey 5.060 3.86 Egypt 2136

V Turkey 4.236 3.13 Myanmar 4.900 3.74 Ethiopia 2041

VI Myanmar 3.350 2.47 Iran 2.950 2.25 Mexico 1817

VII Ethiopia 1.222 0.90 Ethiopia 2.495 1.90 Cyprus 1533

VIII Mexico 1.156 0.85 Mexico 2.099 1.60 Myanmar 1463

IX Syrian Arab 0.845 0.62 Canada 1.694 1.29 Australia 1418

X Canada 0.720 0.53 Yemen 0.580 0.44 Turkey 1195

- - - India 920

World 135.40 World 131.020 World 968

**Source: FAO Staistics-2013

Rajasthan Agricultural Competitiveness Project 10

**Area-Lakh ha, Production-Lakh tonnes, Yield-kg/ha

Figure 1 Chickpea Global Scenario (2013) –Area and Production

1.3. National Scenario- Production

Chickpea or Gram is a Rabi crop in India and is known by the name Chana and Chickpea . It is sown in

the arid and semi-arid regions of the country and used as food in various forms and is a primary source

of protein for the poor, as it is cheaper than other pulses. Although gram is also produced in other

states of the country, most of the production comes from Madhya Pradesh, Uttar Pradesh, Rajasthan,

Andhra Pradesh (Telangana) and Maharashtra. The statistics of these players that dominate the Indian

market in production comprising 90% of production of gram is given below ( In accordance to figures

for 2013-2014):

Madhya Pradesh is the largest producer of the gram with 26.90 lakh tonnes (32.73%) to its credit with major districts like Vidisha, Bhind, Morena, Chhatarpur, Jabalpur, Narsingpur, Dhar, Hoshangabad, Raisen, and Gwalior contributing in the figures.

The second largest producing state of the country is Rajasthan with figures of 16.0 lakh tonnes (19.46% of India). In Rajasthan; Jaipur, Dausa, Karauli, Sawai Madhopur, Alwar, Kota & Tonk, Ganganagar, Hanumangarh, Churu, and Jhunjhunu are the main producing districts.

Maharashtra holds the third position with 15.82% share. Major bulk of the gram in Maharashtra comes from Osmanabad, Ahmednagar, Aurangabad, Nanded, Nashik, Solapur, Parbhani and Beed districts.

In Uttar Pradesh Banda, Hamirpur, Sitapur, Fatehpur, Sultanpur, Jalaun Jhansi, Allahabad, Agra, Kanpur and Barabanki districts produces most of the gram in the state.

In Karnataka, Gram is produced by Gulbarga, Bijapur, Bangalore (Rural) and Davanagere districts. In Haryana Hissar, Sirsa, Rohtak’ Mahendergarh, Gurgaon, Jind, Kaithal and Karnal districts are the main producers of Gram.

Gram is also grown in small quantities in the state of Bihar, Gujarat, West Bengal, Chhattisgarh, and Punjab1

1 Top 10 gram producing states in India (http://www.ethicalpost.in/top-10-gram-producing-states-in-india/)

Rajasthan Agricultural Competitiveness Project 11

The table and chart below portray the statistics at the glance commensurate with production figures of dominant players and their share in the total percentage. The figure highlights production share calculation for the 10 years average i.e. 2005-2014-DES, MoA. And concludes that India the sowing and harvesting period of chickpea differs from state to state.2 The state wise contribution with Madhya Pradesh, Maharashtra and Rajasthan leading the major players.

Table 4: Top 10 Gram Producing States (As per 2013-14)

Sr. No State Production Share (%)

1 Madhya Pradesh 2,690.00 32.73

2 Rajasthan 1,600.00 19.46

3 Maharashtra 1,300.00 15.82

4 Andhra Pradesh 720 8.76

5 Karnataka 630 7.66

6 Uttar Pradesh 530 6.45

7 Chhattisgarh 240 2.92

8 Gujarat 200 2.43

9 Haryana 110 1.34

10 Bihar 60 0.73

Chart 2: State-wise share to Chickpea Production3

2 http://www.aicrpchickpea.res.in/preface.htm 3http://www.commoditiescontrol.com/eagritrader/common/newsdetail.php?type=SPR&itemid=8204&cid1=,2,

&varietyid=,33

39%

14%14%

10%

6%

7%10%

State wise contribution in Bengal Gram Production (Avg of 10 yrs i.e 2005-2014)

Madhya Pradesh

Maharashtra

Rajasthan

Andra Pradesh

Karnataka

UP

Other

Rajasthan Agricultural Competitiveness Project 12

1.4. Import and Export:

Chart 3: India’s Chickpea Imports VS Total Pulses Imports

**Source: Department of Commerce **Unit in Thousand Tonnes

-Chickpea; - Total Pulses

India imported about 4.19 lakh MT of chickpea during 2014-15 that comprises approximately

9.14% of the total pulses imported by India. Owing to severe shortage in domestic supply, total

pulses imports in 2015-16 increased almost by more than 26%. Chickpea imports in the same

year increased by about 146%. In comparison to total pulses imports, chickpea imports were

about 17.79% which was largely because of lower supply availability in domestic market.

Bumper crop in majority pulses in Year 2016-17 led to decline in overall imports including

chickpeas.

Chart 4: India’s Chickpea Exports VS Total Pulses Exports

**Source: Department of Commerce

**Unit in Thousand Tonnes -Chickpea; - Total Pulses

India exported about 1.9 lakh MT of chickpea during 2014-15 which was about 85.64% of the

total pulses exported by India. Performance of Chickpea exports in 2015-16 was similar to 2.16

Lakh MT; i.e. 84.87% of total pulses exports.

418.87

1031.48

421.02

4584.84

5797.775420.25

0

1000

2000

3000

4000

5000

6000

7000

2014-15 2015-16 2016-17 (april-Dec)

0

50

100

150

200

250

300

2014-15 2015-16 2016-17 (Apr-Dec)

Rajasthan Agricultural Competitiveness Project 13

1.5. State scenario- Production

Rajasthan, currently the 2nd largest producer of Chickpea/Bengal Gram in India as stated previously has two varieties of Bengal gram grown in the state. One is the Early variety that is sown during the last week of October to last week of November and harvested from the 3rd week of March till the end of the month and the second is the Late variety that is sown from last week of November to the last week of December. The Late variety is harvested from 3rd week of April to the end of the month. Major trading centers of Chana in the state are Jaipur, Bikaner, Kota, Jodhpur, Sriganganagar, and Hanumangarh. The table below gives a trend summary of Chickpea Area, Production and Yield of Rajasthan: Table 5 Chickpea Area, Production and Yield of Rajasthan

Year Area (Ha) Production (MT) Yield (kg/Ha)

1964-65 1368.5 722.3 528

1965-66 1112.7 413.9 372

1966-67 1116.6 518.0 464

1967-68 1322.6 1049.1 793

1968-69 994.2 600.0 604

1969-70 1285.1 782.6 609

1970-71 1617.5 1195.4 739

1971-72 1642.2 884.8 539

1972-73 1204.5 803.1 667

1973-74 1500.5 715.2 477

1974-75 1425.2 795.8 538

1975-76 1952.4 1498.3 767

1976-77 1776.1 1361.4 767

1977-78 1862.0 1488.0 799

1978-79 1747.7 1589.3 909

1979-80 1377.5 749.8 544

1980-81 1225.4 854.3 697

1981-82 1935.2 1257.2 650

1982-83 1756.0 1318.0 750

1983-84 1796.3 1088.3 606

1984-85 1532.6 969.3 632

1985-86 1940.7 1623.1 836

1986-87 1411.7 823.5 583

1987-88 684.2 411.5 601

1988-89 1281.8 967.0 754

1989-90 1143.8 711.4 622

1990-91 1652.7 1011.0 612

1991-92 1028.7 678.9 660

1992-93 1448.7 793.7 548

1993-94 1221.8 747.2 612

1994-95 1586.5 1371.1 854

1995-96 1620.3 1090.3 673

1996-97 1519.1 1071.0 705

1997-98 2213.9 1924.6 869

1998-99 2815.7 2073.8 737

1999-2K 975.3 677.9 695

2000-01 672.6 396.6 590

2001-02 969.6 735.5 759

2002-03 449.7 340.6 757

2003-04 1117.5 707.2 633

2004-05 1035.2 773.0 747

2005-06 1081.9 478.9 443

Rajasthan Agricultural Competitiveness Project 14

2006-07 1010.8 872.6 863

2007-08 1231.3 574.2 466

2008-09 1259.5 981.2 779

2009-10 884.4 534.6 605

2010-11 1783.0 1601.0 898

2011-12 1433.9 991.1 691

2012-13 1252.9 1277.4 1019

2013-14 1923.5 1640.4 853

2014-15* 1497.2 1224.7 818

**Source: ICAR-Indian Institute of Pulses Research ** 2014-15* were advance estimates. However, Rajasthan saw lower production in the period owing to some aberrations in yield and unfavorable weather conditions. **Area-000’ ha, Production-000’ tonnes, Yield-kg/ha

Chart 5: Trends in Area, Production and Yield of Chickpea in Rajasthan

** Area: ** Production: ** Yield:

**Area-000’ ha, Production-000’ tonnes, Yield-kg/ha

**2014-15: Advance Estimates

** Study Period: 2004-05 to 2014-15

Area under chickpea production and cultivation has gradually increased (with some aberrations)

in Rajasthan in the study period.. Further, 2007-08 saw a major increase of 21.81% (over

previous year) in area under cultivation. A sharp decline in Year 2009-10 (about 29.78% over

previous year) was followed by a major boost in area cultivated in Year 2010-11, which

observed over 100% increase in area over previous period.

Production of chickpeas, in the same period, has grown by about 58.43% in Year 2014-15 as

compared to Year 2004-05. A sharp decline in production of about 45.52% was observed in

Year 2009-10 as compared to previous year. This trend could be attributed to poor

remuneration received by farmers in previous year coupled with poor weather conditions during

harvest in that year, leading to large scale crop damage and poor yield. However, in the very

next year (i.e. 2010-11), sharp increase in cultivated area, owing to increasing domestic demand

and use of high yielding varieties (coupled with some good agricultural practices, including

increase in irrigated land) led to increased production of approximately 200% as compared to

Rajasthan Agricultural Competitiveness Project 15

previous year. In nutshell, use of high yielding varieties, better/more scientific agricultural

practices, favorable price support policy of Government and incentives, have led to

phenomenal growth in production of chickpeas in Rajasthan.

Yield of chickpeas has increased marginally from 747 kg/ha to 818 kg/ha in the same period.

Year 2012-13 saw much higher yield of about 1019 kg/ha. Use of high yielding varieties

coupled with some good agricultural practices, inputs of allied R&D institutions, various

support measures of Government (including supply of inputs benchmarking with other states

and countries) has led to this increase in yield. Yet, the average yield of about 897 kg/ha (in last

3 years of study period) is still lower than few other major pulses producing states.

1.6. Global scenario – Pulse Flour market Pulse flours are derived by grinding pulses such as peas, lentils and chickpeas. Pulse flour, when

combined with its grain counterpart, may improve the overall nutritional content of a food item. The

global pulse flour market was at $17.02 billion in 2015 and is expected to reach $56.62 billion by 2024,

according to a report issued in October by Grand View Research, San Francisco. The bakery and snacks

segment accounted for over a 90% share of the global pulse flour market in 2015. Grand View Research

expects pulse flours to have a compound annual growth rate of 14.5% within this segment from 2016-

2024. When incorporated into bread, pulse flours add a new taste and an enhanced nutritive value. The

ability of pulse flours to replicate the functional properties of other flourswithout causing any side

effects may propel consumption through 2024. Grand View Research forecasts a CAGR of over 12%

for pulse flour incorporation into beverage applications from 2016-2024. Pulse flours in beverages may

provide a suitable alternative for children who are lactose intolerant or are allergic to soy. Pulses are a

low-fat source and have high fiber content and a low glycemic index, according to the report.

Chickpea flour accounted for over a 30% share in the global pulse flour market in 2015. According to

Grand View Research, the nutritional elements of chickpea flour such as selenium, iron, potassium,

sodium and magnesium should propel its demand from 2016-2024. Lentil flour, which may be used in

combination with pea flour, accounted for more than a 10% share of the global pulse flour market in

2015. Grand View Research forecasts a CAGR of over 15% in lentil flour revenue from 2016-2024.

Geographically, Europe had over a 25% share of the global pulse flour market in terms of revenue in

2015. Other areas should grow revenue through 2024 with CAGRs projected for Middle East and

Africa (over 16%), Asia Pacific (over 15%) and North America (13%).

The global pulse flour market is primarily propelled by the rising consumption of various pulse

flours and bakery products in various regions. The rapidly growing demand for fast food products

in restaurants, cafes, and food chains in various developing and developed nations is bolstering the

demand for pulse flour milling. The rising demand for pulse flour confections is expected to boost

the market, especially in developing regions. The market is expected to benefit from a growing

demand for bakery products with nutritional benefits and containing unique flavors. In addition,

the development of a large number of pulse flour mills (especially chickpea flour mills) in several

developing nations is a key factor in boosting the market.

The advent of baking mix lines by players in developed markets and a vast growth of operations of

local mills are crucial trends expected to catalyze the growth of the flour market. The growing

Rajasthan Agricultural Competitiveness Project 16

expenditure on staple foods, that are rich in protein or are gluten free is a key factor expected to

accentuate the market. To meet a burgeoning demand for pulse flour, there is a substantial increase

in the production of chickpeas and other pulses in some regions. In addition, the growing demand

for noodles and breads in various regions is expected to bolster the uptake. The substantial demand

for wafers and biscuits in some populations is predicted to also boost the market.

Also, advancement in milling process has led to the production of gluten-free bakeries and an

innovative line of baking mix. In addition, the rising prominence of the value-added processed

bakery industry in developed regions, particularly in parts of Europe, is expected to open lucrative

growth avenues for market players.

As a matter of fact, pulse flours generally may replace a certain amount of wheat flour and flour made

from other grains, including gluten-free grains. Protein boosts are possible in other applications as well.

Pulse Canada, an industry association that represents growers, processors and traders of pulse crops in

Canada, incorporated pulse flour in pasta that featured 5 grams of protein per serving, enough for a

claim of good source of protein, offers Open Nature brand quinoa bread that qualifies as a good source

of protein. Chickpea flour, lentil flour and yellow split pea flour are all ingredients in the bread.

Pulse flour used in conjunction with cereal flour improves the quality of protein without the need for

fractionation into pea protein concentrate/isolate and pea starch. For this reason, pulse flours are more

economical since less processing equals less cost as well as the added benefit of a cleaner label and a

more environmentally friendly product. The protein in pulse flours may complement the protein in

grain flours.

Pulse flours may provide the nutritional attributes of protein, dietary fiber and micronutrients along with

the functional properties of expansion and texturizing in breakfast cereals and extruded snacks. In

gluten-free crackers, pulse flours may provide protein, dietary fiber and micronutrients along with the

functional properties of expansion, binding, texturizing and gel formation. Too high a percentage of

pulse flour in formulations, however, may lead to sensory issues as well as issues with batter and dough.

1.7. National scenario– Pulse Flour market The market for pulse flours in the Asia Pacific region is projected to grow at the highest CAGR in terms

of both volume and value, from 2017 to 2022. This dominance is projected to prevail during the

forecast period as well. The region is the largest consumer of pulse flours with countries such

as India, China, Australia, Japan, Myanmar, Thailand, The Philippines, and Malaysia contributing to the

high consumption of various food products produced using pulse flour ingredients.

In India, the use of whole chickpea for making flour depends largely on the type of plant used for

processing. It was observed that, for making flour, the size of split chickpea is not important. The most

important factor identified in several surveys is the recovery rate. Flour millers often use desi type

chickpea of slightly lower quality than that used for making dal. Locally produced desi chickpea are

mostly used for making flour, although millers sometimes use imported ones. The colour of dal (often)

is not a needed quality trait for flour making.

Indians by nature are fond of sweet as well as spicy food and Gram flour is an important ingredient in

such preparations. It is a versatile product used in many preparations round the year. Apart from

individual households, there are some institutional bulk consumers like restaurants, other eateries,

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hostels and canteens, clubs, caterers, etc. It is a very commonly used item in the Indian kitchens and

thus enjoys continuous market throughout the year. Chickpea flour (besan) is a major ingredient in

several Indian snack foods, while urad and mung flour also go onto making snack foods such as pappad (a

kind of wafer).

Besan is a high potential market in India with annual production volume of over 5 million tonnes; i.e.

over 50% of the approximately 10 million tonnes of desi Chickpeas produced in India (which goes for

grinding into Besan). With an average capacity of 1 TPH plants, it is estimated that that over two

thousand besan mills process the produce. Notably, most of these besan mills are extended dal mills

(pulses processing units), which sell their first grade chickpea split dal and process second grade and

broken (khanda) to manufacture besan. Largely, market demand for besan depends on freshness, quality

and fineness of grinding. In general, consistency of besan quality is of prime importance to millers since

it has a major impact on the sensory properties of the end product. The industry demands different

Besan grades for typical applications, which are mainly based on particle size distribution of the flour.

The table below gives typical application wise grade/particle size of besan in India:

Table 6: Besan grades and applications Grade Particle Size Typical Application

Ultrafine >98% passing 75 micron Soan Papri

Superfine >98% passing 100 micron Dhokla & Baked/steamed products

Fine >95% passing 100 micron Same as above

Gargara >95% passing 250 micron Pakoda, laddo, boondi & other deep fried snacks

Top brands in the segment for packaged besan include Rajdhani, Fortune, Reliance, Golden Harvest, Tata I-Shakti, Shakti Bhog, Ahaar and Tirupati. Most of these brands sell semi-fine or coarse varieties of besan because the same is essential for making crisp pakoras/laddoos or other fried products. Fine varieties as per requirements of Soan Papri and Dhokla & Baked/steamed products are specially prepared as per requirement of some specific clients like sweet manufacturing units and restaurants. The urban market dominates branded packaged besan market in India (an estimated 99%) and the urban consumers dominate the consumption of the same in India. This product is a preferred choice ; especially among the working couple, young people with single status and members of nuclear families who are health conscious. The various underlying factors driving the consumers for purchase of packaged besan are - to fulfil the basic nutrition needs, for convenience and time saving, lack of storage of besan in bulk and perceived high quality of packaged besan. More than 70%, particularly health and quality conscious consumers prefer to buy specific brands of packaged besan showing the brand loyalty. The growing numbers of working women and their inclination towards the convenient food products

will enhance the future demands of branded and packaged besan in India. If the growth trajectory

remains the same, the market of packaged besan may likely to be much more than double the current

size by the end of current decade. Marketing firms need to come up with new and innovative product

packaging and product proposition for differentiating themselves and for sustainable long-term growth.

It is also expected that the consumers would eventually give more importance to the origin of ingredient

and related convenience factors in case of Packaged Besan. The current growth figures look promising;

however, players with strong brand image, product quality, distribution network and constant R&D for

product innovation capabilities shall stay and grow in the market.

Despite these promising growth figures, the branded packaged besan is only about 2-3% (estimated) of

the total besan market. Notably, several small scale units cater the demand of both urban and rural

markets that include households, street food vendors, restaurants, small sweet shops, etc.

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India has also exported about 12,000 tons of besan worth Rs. 7800 lakhs in year 2015-16 (APEDA)

mainly to USA, UK, Australia, Kuwait, Canada, New Zealand, UAE, Singapore, Saudi Arabia, Oman

and other countries.

1.8. State scenario– Pulse Flour market Rajasthan is the second largest producer of gram in the country and presents immense potential in

processing, polishing and packaging of gram/dal as well as preparing besan. Besan has great relevance in

the famous Rajasthan cuisine. From sweet to spicy, and from crispy to succulent, besan is used here in

as many delicious varieties as one can imagine. Some of these delicacies include Besan ke Gatte, Pittod,

Rajasthani Kadhi/Khaata, Mohan Thaal, Bhajiya, Bikaneri Bhujia, Mirchi-bada, etc.

There are fifty odd dall mills in the state that process and market dall across the country. A large

majority of these units are based in Jaipur and Bikaner districts. Some other units are located in limited

numbers at Jodhpur, Udaipur, Hanumangarh, Bharatpur, Kota and Nagaur districts. Some of these mills

also have besan processing units or alternatively supply their split dal and broken to other units having

besan processing. In some food retail centres and in shopping malls in Jaipur, more prominent brands of dals and besan

like Tata I-Shakti, Fortune, Reliance, Shakti bhog, Rajdhani, etc are more visible on shelves. However,

some local brands are also available in these retail chains and equally popular in small retail shops. Some

of these brands include ‘AgroPure’ promoted by AgroPure Group (NCR), ‘Shri Balaji’ promoted by Shri

Balaji Dall Mill (Rajasthan), ‘Gangaur Besan’ promoted by Mantri Agro Industries (Rajasthan). Some

organic dal and besan brands are also available.

The main advantage of dall and besan mills is logistical benefit gained from proximity to some major

markets. Rajasthan has proximity to large consumer markets in the region (in and around the NCR) that

have a big share of India's food consumption. 8,380 sq km of Rajasthan falls in the National Capital

Region (NCR), which is around 24.5% of the total NCR. Rajasthan shares its border with five major

Indian states: Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat. Besan mill units in

Rajasthan have to their advantage, access to this enormous market.

1.9. Products and Applications-A brief note Chickpea has been a part of certain traditional diets and is still one of the most widely grown and

consumed legumes worldwide and, over the years, have often been linked with longevity, heart health

and better weight management.

Today, chickpea flour/Besan is still widely used in South Asia and the Middle East in the same way it

has been for generations. Some traditional uses in Asia for chickpea flour include using it in curries,

making it into cakes called Senagapindi Kura or having it in a type of breakfast porridge. Chila, a

pancake made with chickpea flour batter, is also a popular street food in India, and in parts of Italy,

chickpea flour is used to make a thin flatbread called farinata. The Spanish also sometimes use chickpea

flour to make tortillas in place of corn. Besan is used in preparation of a variety of foods / snacks in

most parts of India, including sweets (desserts), savories and snacks, including Laddus, Dhoklas, Bhaja,

Farsan, Bhujia, and many more.

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In addition to the health benefits, Besan is also a beauty enhancing ingredient, which is a traditional

practice in India. From Facial packs to reduce skin tan, to treat Pimples, to treat oily skin, to make the

skin blemish-free, besan works wonders. It is widely used to cleanse the skin and exfoliate the skin as a

natural method of skin treatment. It is also used in hair care, especially as a key ingredient in making the

hair healthy and long. Besan is also used in facial treatments as a scrub and also to remove unwanted

facial hair. Traditionally, besan has been used as a body scrub and also as a hair wash, which continues

to be a good practice even today in Indian households.

Besan is also known to be a great source of fiber. High fiber, nutrient-dense flours (like besan) help

balance unhealthy cholesterol levels, reduce hypertension and protect against heart disease. Fiber,

particularly soluble fiber, not only lowers blood cholesterol levels, but also helps slow the absorption of

sugar into the bloodstream. This is important both for people with diabetes and for anyone else with

blood sugar challenges or metabolic syndrome. Besan has a form of complex carbohydrate called starch

that the body is able to slowly digest and use for energy over time in a much more beneficial way than

consuming refined carbohydrates. Notably, besan is both a high-fiber and high-protein food, which

helps make one feel full and often curbs food cravings. That can make losing weight fast in a healthy

way a realistic goal.

Besan is also a terrific anti-inflammatory foodas consumption of the same has been shown to have anti-

inflammatory abilities and protective benefits against cancer, in particular cancer of the digestive tract

including colon, stomach and kidney cancer. As besan has zero wheat, barley, rye or cross-contaminated

oats, it’s totally free from gluten and all grains. Whether or not someone has true gluten sensitivity or

allergy, most people can benefit from avoiding gluten due to its negative effects on the gut, digestion

and immune responses.

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Chapter 2: Technology advances and circumstances in Pulse Flour Milling

2.1. Evolution of Pulse Flour (Besan) Milling Pulse crops were first domesticated at the beginning of agriculture more than 8000 years ago in a fertile

band of land stretching from Turkey to Iran. Milling of pulse seeds also dates back to ancient times.

Tools for milling seeds date back to the Neolithic period, c. 5600 BC and were used to produce either

dhal or flour. Dhal (also spelled dahl, dal or daal) or splits refer to the two cotyledons that remain after

dehulling and splitting a pulse seed. Considering the dates of pulse cultivation, Sanskrit manuscripts and

the age of early milling equipment, the origins of pulse milling would date somewhere between 3500 and

7600 years ago.

Pulses were traditionally milled in South-East Asian countries where they constitute as staple foods in

the diet. Most traditional methods are performed at home by families or by small communities. The

original method used in ancient times was hand pounding with stones or mortar and pestle, followed by

the use of quern stones. The earliest form was a saddle quern that consisted of a large gritty base stone

and a small, fist-sized smooth stone. Seed could be fractured into

rough splits,or with continued pounding reduced to a flour. The

saddle quern later evolved into rotary and oscillatory querns (also

known as chakki). These consist of two large abrasive stones that fit

together, the bottom one slightly convex and the upper one slightly

concave. The top stone has a central hole in which seed is slowly fed

while the top stone is rotated by a wooden handle. As the top stone is

rotated, the seed tumbles between the two abrasive stones, resulting

in dehulling and splitting of the seed. Continued turning of the top

stone further reduces the split seed to flour. Chakki-type mills are still

often used by many households in South-East Asia. After milling, an edible oil (such as linseed oil)

and/or water may be added to the dehulled seed or dhal to impart shine and improve appearance

(although oil addition may also decrease shelf-life by increasing the rate of rancidity). Alternatively, dhal

may be polished without oil/water addition using a cone-type polisher or a buffing machine consisting

of leather straps on a rotating paddle. Milling techniques have essentially evolved on trial and error over

many hundreds of years and these secrets have been passed from one generation to the next as tradition.

Basically, after harvesting, there is a series of processing steps, including cleaning, grading, hulling,

splitting, polishing and optical sorting, depending on the final form required for the particular market.

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Such processing ensures that pulses are free from impurities, uniform in size and color, nutritional, easy

to cook and digest. Most units today, especially in South-East Asia, having pulse flour milling section are

in fact integrated pulse processing units. That is, these units process pulses to manufacture split dal and

then trade some portion of dal while also further process same to manufacture besan. None the less,

there are many stand-alone besan plants as well that procure split dal and brokens to process into flour.

Essentially, gram or other pulses need to be cleaned and dehusked to process for besan.

In the past, the processing industry was run as something of a cottage industry, based on many small,

inefficient mills. These older mills can be characterized as manually operated with high labor costs, poor

energy efficiency, low yields and product wastage. Additionally, they have poor dust extraction and

machinery is prone to break down. Fortunately, all of these issues are addressable, using state-of-the-art

technologies. The traditional pulse processing industry is now transitioning to a new form, based on two

types of mill: on one side, modern high-volume mills, achieving efficiency through economies of scale

to address the mass markets, on the other side, smaller specialist mills - modern, hygienic and efficient -

to satisfy niche markets.

Key factors driving technology upgradation in pulses milling (including flour milling) are - growing

health consciousness, preference for quality products in packaged form and shortage of labour. Millers

look for solutions that minimize power consumption, compress production cycle, reduce brokens/waste

and are efficient in operation and maintenance.

The pulse flour milling process, as it is known today, further evolved in the period between the years

1800 and 1900. Various innovations in the pulverizing function too were introduced. In the simple

grinding (one step) process grinding technologies like stone mill, hammer mill, pin mill and ferkar mill

saw new advances leading to production of finer quality with higher recovery rates. On the other hand,

few large units also adopted to gradual reduction systems which primarily involved use of roller milling

system. The advantage of the newer, more elaborate process was that higher yields of quality pulse flour

could be produced.

2.2. Key Advances in each step and process of Pulse Flour (Besan) Milling The process of converting pulse into flour has three fundamental steps - pulse cleaning, milling to

obtain splits, and of course, the pulverizing process. The production of quality pulse flour essentially

depends on availability of effective cleaned and processed split pulses.

Advances in Pulses cleaning, dal milling and optical sorting4: The production of quality flour

begins with effective cleaning of pulses. Critical flour quality characteristics, such as ash and color, are

impacted by the cleanliness of the pulses. Consistency in the pulses tempering and conditioning process

depends on effectively removing dust, foreign grains and other impurities from the raw material. The

pulse flour milling industry continues to develop and incorporate new technology to improve flour

quality and consistency, maximize equipment utilization by reducing downtime and improve energy

4 This report largely focuses on pulse flour mill (besan mill) technology which is a milling procedure undertaken post pulses are processed to obtain splits in a dal mill. Hence, only some limited and relevant information with reference to dal milling is considered in this report. Detailed description of various technologies in dal milling and advances in the sector are presented in “Study Report of Innovative Technology based Business Model: Dal Mill”, prepared under the aegis of Rajasthan Agricultural Competitiveness Project.

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utilization. Recent advances in the process to remove the unwanted impurities from the quality chickpea

and other pulses reflect the industry’s desire to become more efficient at producing a consistent, quality

product.

Screening or sieving to separate good quality pulse from foreign grains, sand, stones and many other

types of course and fine impurities has been the principal method for cleaning pulses from the

beginning of flour milling history. Over time, various machines have been introduced and improved

upon to increase sieving efficiencies. Sifters and sifting reels to remove impurities and classify pulse by

size were commonly used as primary cleaning equipment as the importance of cleaning and grading

grain developed.

As the operating capacities of mills increased, the use of oscillating or vibratory screeners expanded to

keep up with the increased capacity requirements. Aspiration was incorporated into these designs to

remove the dust and light impurities before the screening to improve effectiveness of the sieving. As

pulse cleaning technology continued to advance, machines that combined multiple cleaning principles

were introduced incorporating sieving, density separation and aspiration into one machine. Combination

machines allowed more pulses cleaning capacity to be done in a smaller space, helping to reduce the

capital cost of new mills and mill expansions. New innovations in pulse cleaning reintroduce the

advantages of sifting and grading pulses by size while removing impurities. These more recent

advancements in pulse cleaning integrate modern technology and materials to meet the growing demand

for higher operating capacity, improved cleaning efficiency and lowering the cost of operation and

maintenance.

For dehulling and splitting, traditional stone chakki design was used as a template for the attrition-type

mills as commercial-scale dehulling and splitting of pulses emerged. The two-stone principle was

retained and the much larger stones were rotated using the energy of harnessed animals (such as

bullocks) or running water (such as in the flour mills of Europe). The mills were adapted as electricity

became an available power source, and automation increased. Now, the stones are artificial and coated

with carborundum (derived from silicon carbide) of various abrasive grades (grit size). These new

improved attrition-type mills are often called under runner disk shellers (URD Shellers). The orientation

of the stones can be either horizontal (as in the original chakkis) or vertical, and the gap between the

stones can be adjusted to the seed size to optimize dehulled seed and/or dhal yields. The other modern

mill type is a carborundum roller mill. It has a cylindrical carborundum stone that is tapered and rotates

inside a perforated metal casing so that the gap between the roller and casing decreases from the inlet to

the outlet. The stone or casing can sometimes be moved to adjust the gap depending on the seed size.

These mills are often mounted horizontally or on a slight downward angle to facilitate passage of the

seed. Lot of work is being done on de-husking of seed coat and splitting of cotyledons. New Generation

de-hullers in market are able to scratch seed coat more effectively with a proper control on emery

Speed, Pressure, and Appropriate selection of emery grit size viz a viz typical pulses. New hullers are

capable of handling all types of pulses with equal ease. Efficient De-husking means removal of seed-coat

with a minimum damage to cotyledon which in turn helps to increases yield.

Drying technology was another technological gap where milling industry was struggling to get food safe

solution and efficient de-hulling and splitting. Dryers introduced in the pulses industry efficiently

remove surface moisture and core moisture of seed. This makes seed coat scratching easy. Temperature

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stresses created by drying process help cotyledon to split without much force. Not until a long time ago

impact and shearing force were used to split dal spoiling aesthetics of dal apart from yield. Drying

technology helps in getting higher yield and higher productivity. New drying technologies are helping

processor to avoid sun drying process which was not food safe. Dryers with better temperature and

process controls help pulse to retain its original properties. Better temperature control also helps pulses

from possible deactivation of enzymes. It is more useful when dal batters are used for fermentation. It

increases overall yield of end product.

The demand for the color sorted product has increased in the market as customers prefer sorted pulses

and are willing to pay a high price for the sorted product. The technology in color sorters has advanced

from basic monochromatic versions to bi-chromatic and now comprises of the advanced Tri-

chromatic/RGBS models. In context of branded packaged pulse flours, color sorted splits are highly

essential for further process in flour mill section. Machinery manufacturers are therefore focusing on

this segment as the same is growing very rapidly.

Advances in Grinding: Pulse splits and broken obtained in dal milling could be further processed to

produce flour (besan) by grinding. The type of the flour and therefore the milling method will be

determined by the final product which will be made of the flour. For example, the particle size range

and distribution will have a major impact on the functionality of flour like water absorption and

viscosity. This, in turn, will influence the properties of the final product like texture and porosity. There

are two principle systems used to bring about the size reduction necessary for processing. The first

system involves one step or simple grinding wherein technologies like hammer mill, stone mill and pin

mills are used. The second system involves gradual reduction; basically use of roller milling system. So

after the dal milling process, based on investment, capacity, required fineness of pulse flour, units may

adopt either of the below:

Dal Milling

One Step or Simple Grinding System Gradual Reduction System

Hammer Mill Stone Mill Pin Mill Roller Mill

To obtain a flour of more uniform particle size, ground particles are passed through one or more

screens. The grinding and screening process may be done as separate processes, or may be

simultaneously performed in an automated mill, such as an impact mill or roller mill.

Impact mills, such as hammer mills, are commonly used to produce pulse flours from dry seeds (without

pre-conditioning). The principle behind a hammer mill is simple. The mill is composed of a steel drum

containing either a vertical or horizontal rotating shaft. The shaft is fitted with hammer bars and is spun

inside the drum as seeds are fed into the mill. Upon impact with the hammer bars, the seeds are reduced

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until the particles are small enough to exit the mill through the metal screen. Thus, the process involves

reduction in size by a series of impacts against a rigid housing. The metal screen is often changed to

obtain the particle size desired.

Differences among pulse species show inherent properties that influence grinding behavior. In addition,

the flours produced from different species have different physiochemical, thermal and functional

characteristics, and varietal differences have been observed. In impact milling, the stress before rupture

is primarily concentrated at a single point, in contrast to a roller mill where the energy is more evenly

dispersed. Roller mills consist of a series of paired cylindrical rollers with a gap that can be manually

adjusted. This gap decreases with each set of subsequent rollers. The first set of rollers is designed to

crush the seed and remove the seed coat, while the latter rollers are designed to allow particular flour

particle sizes to pass through screens. Roller mills are routinely used for wheat milling, after grain is

tempered to particular moisture content. This pre-conditioning is less suitable for many pulses which

have higher oil and water-soluble non-starch polysaccharide contents. Such pulses are better milled dry

to avoid potential residues being deposited in the mills. Research have shown that the milling fractions

obtained from the roller mill (shorts, reduction flours and break flours) are derived from the outer,

intermediate and inner layers of the cotyledon, respectively. Clearly, a number of factors affect the

physiochemical and functional properties of pulse flours. These include the mill selected for preparing

the flours, milling conditions and selection of screen and/ or sieves for separation of the ground

material. Flour specifications are needed for pulse flours and it is highly probable that the specifications

will vary with intended end-use, similar to wheat flour specifications.

Quality Assurance: Quality assurance and food safety is another area where food sector is looking

beyond just legal standards and providing the entire food industry a scientific basis which ultimately

leads to new approaches in technology. Food assurance and food safety standards such as ISO 9000,

ISO22000, HACCP, GMP, GHP are now becoming integral part of food industry thus keeping food

industry technologically abreast to global practices.

Larger Capacities of Machines: The principle emphasis in this area has been on improving the

effectiveness of existing machines rather than on developing new types of machine. The so-called ‘short

surface mill’ is now the norm. This refers to the amount of grinding equipment required to process a

specific throughput of pulses. This figure has more than halved in the last few decades. Typically,

grinders are operated at double the speed and three times the feed rate that would have been the norm

in the 1950s. The advent of new ‘high speed’ grinders has taken this evolution one step further with

speeds and loadings double those of today’s norms. The efficiency of sifting has also been increased

significantly.

Safe, Scientific and Food Grade Machine Construction: Even today, many besan milling units use a

range of grinding machines, achieving the required granulation by sifting the flour with rotary sifters.

The individual lines have low capacity and an aggregate of mills and sifters are used to meet the desired

plant capacity leading to huge machine footprint, difficult & time consuming changeovers & higher

operational & maintenance cost. Moreover, manual operations and repetitive cleaning or changing of

sieves increases the dust and brings down the hygiene levels throughout the plant.

In recent years, significant changes have occurred in the way machines are built. In general, all surface

contact parts are suitably built of food grade materials like stainless steel. Also, minor supports and

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fixtures like screws and bolts have been largely eliminated inside the process sections to avoid any

contamination. Modern machines are now designed to have compact structure and small footprint.

Advanced mills are now designed to deliver high capacity, increase productivity and plant efficiency

while providing the flexibility of producing a range of Besan grades from the same mill. Modern

automated plants allow on-line control of granulation, wherein no mechanical sifters are needed -

leading to faster changeovers between product grades, thus improving productivity of the plant. In

nutshell, modern plants are designed to replace multiple smaller units used in conventional milling,

leading to a reduction in power consumption per ton. Moreover, the simplified operation results in

lower maintenance and manpower costs. This has become increasingly important where besan mills are

expected to run for extended periods between maintenance shutdowns. In addition, hygiene

considerations are now being taken into account in all new machine generations. Features are being

incorporated that minimize stock hold up and ease cleaning, thereby reducing contamination and

infestation problems.

Advanced Engineering and design, Efficient Aspiration and Material Movement: Material

handling systems like elevators, conveyors, etc and the engineering design behind same is now executed

to ensure reduced material travel between machines enabling leaner manufacturing also aiding reduction

in power costs and unnecessary instances of human intervention at various stages. Vertical designs of

besan plants with controls at storey levels or at central plant location have now become the standard

norm. The aspiration system that includes cyclones, fans, airlocks, etc. and the engineering behind the

same is done to ensure compact design eliminating leakages/wastages and resultant dust discharge in

shop floor air. This has increased overall safety and efficiency of the mills.

Process Optimization: All processes in pulse flour milling can be optimized and controlled through

control panel i.e. automation. Process optimization refers to operate plant optimally with economic

performance in terms of productivity and yields. It also avoids human errors. Scada systems are now

integral part of besan milling industry. Electro-Pneumatics and PLC have significantly changed the way

plants are operated. Automation ultimately leads to productivity and ease of operation. Automation, as

such monitors system, diagnoses problems and provides actionable information which in turn helps

prevent problems both on Grain and Equipment side. It allows operator to identify problems before it

happens and take diagnostic action. Milling industry is now changing from plant control to process

control or even to the extent beyond that.

2.3. Recent Global Technology Advances The global flour milling industry and the equipment and service suppliers that support it are continually

searching to improve technology and methods to process pulses into flour and other byproducts. Some

of the most recent technological advances in the industry offer breakthroughs in areas such as

sanitation, safety and quality control; same are presented below:

a. Insect egg destruction: Buhler’s new impact machine, Matador MJZH, has been developed for the mechanical destruction of insect eggs in flour. More than 99% of insect eggs are completely destroyed at a high throughput due to multiple impacts in cross-flow principle. The Matador MJZH has high mortality rates (independently validated) with minimal operation and maintenance costs. In order to meet individual needs, the Matador comes in five closely graduated sizes, with throughput capacities ranging from 1 to 45 tph. The Matador can be integrated in existing systems with great ease and flexibility – standing, lying or suspended. Depending on the direction of flow,

Rajasthan Agricultural Competitiveness Project 26

incorporation is possible in gravity spouting at atmospheric pressure or in pneumatic pressure lines up to 1 bar of positive pressure. The small machine sizes can also be mounted to the ceiling.

b. Latest Color sorter technology:5 With eight individual models ranging from a 0.5 chute to a high-

capacity 7-chute unit, the Cymbria SEA Chrome offers the latest in sorting technology. The system perfectly suits the needs of modern food processing systems that demand the optical sorters ability to detect and reject products of similar colors but with different shades. Machine adjustment can be carried out easily due to the real image setting, and as with all SEA sorters, the SEA Chrome allows for Internet connection for remote control. Each unit features standard TRU color cameras with 0.1 mm resolution and the ability to add NIR and InGaAs cameras, making it a very versatile color sorter for milling applications.

Key features of the new technology are included in the list provided below

• High capacity feeding chutes with robust in-house vibratory feeder design;

• Proprietary software for defect size analysis as well as shape based on geometric characteristics;

• Program for storing of up to 16 families of defects; LED lighting for long life and low heat

dissipation;

• Versatile flow configuration with re-sort and reverse re-sort;

• Specially designed ejectors to prevent delays and pressure drops;

• Vortex pressurized optical boxes to purge dust;

• 15-inch color touch screen; and

• Rotating optical boxes to provide easy access for maintenance and service.

c. Loading spout: Vortex has made several design changes to its loading spout. Vortex’s outer sleeve is now rivet free and utilizes cable guides rather than less durable plastic. Vortex also redesigned the cone harness cable to eliminate the possibility of misaligned cones, drill shavings and broken hardware, thus reducing the potential for contamination. These loading spouts are designed to capture fugitive dust, prevent material waste, and ensure plant and environmental safety, with low maintenance and service expenses. From the retractable loading spout attached to the bottom of a silo/hopper or located at the end of an air conveying system, to the dust collecting filter system, to the loading spout positioner, the company offers a complete line of versatile loading spout systems for your loading process.

Vortex loading spouts are unique for loading bulk materials into open and/or enclosed vessels

because of their four-cable lifting design providing maximum stability, compared to the standard 2-

or 3-cable systems. The in-line drive system also incorporates special 3-piece CNC-machined pulleys

that feature chamfered edges and precision cable grooves to significantly reduce cable wear and

back lashing as the loading spout extends and retracts, especially during the misalignment of the

hatch opening. Because the cables do not fray, cable failure is nearly eliminated and so is costly

downtime for repairs.

5 Efficient color sorting has become an essential step in integrated pulse processing plants. Processing to obtain pulse flours requires that split and broken pulses are effectively clean from foreign impurities including color and surface impurities.

Rajasthan Agricultural Competitiveness Project 27

d. Flour packer: FAWEMA’s servo-driven FA 217 packer has been redesigned to run flour bags from 2 lbs (.9 kg) to 10 lbs (4.5 kg) in either single, double, or triple fill mode, offering unmatched flexibility in terms of filling rates and bag sizes that can be run by just one packer. Servo technology throughout simplifies operation, changeovers, and maintenance. The FA 217 is a flexible high-performance system that combines the traditionally proven packaging process with the latest design and automation technology. The packer works in a highly energy-efficient manner with a high packaging performance. This is achieved using energy recovery within the electrical drives as well as low mechanical friction loss. At the same time, the maintenance costs are significantly reduced as fewer wearing parts are used. Further savings arise through the high compaction of the product using integrated vibration, so that a minimum of package material is required per bag.

The FA 217 optimally meets higher hygiene requirements in that the depositing areas for product

dust have been minimized significantly. In addition to these hygiene requirements, accessibility to

the system parts is significantly improved based on an ergonomic construction.

e. Wireless hazard monitoring: HazardPRO Wireless Hazard Monitoring System from Electro-

Sensors is a comprehensive solution to combining sensors, advanced technology, and intuitive

software at a lower installation cost than traditional wired systems. The goal is to protect facilities

and people by providing the fastest alerts when they happen and transmit the alerts via the most

convenient method. Consistent operation is ensured with self-diagnostics, transmission logging and

redundant receivers. It allows millers to invest this savings in more accurate sensors, better displays

and more intelligent controls that provide increased system reliability, ease of use and fewer false

alarms. On the HazardPRO status screen, an operator can quickly view the complete operation,

including what machines are running and the status of each. The operator can instantly spot a

problem and then touch the display screen to bring up specific information for that equipment.

Because the HazardPRO intelligent transmitter nodes send information when a change is detected,

there are no polling delays. When an event occurs, it is automatically logged. An operator can view a

graph of the event and, after investigating, can document the cause and resolution. With

HazardPRO, determining the condition of a rub block alignment sensor does not require shutting

down the belt and performing a visual inspection. A warning will be displayed at the control panel if

a block is wearing down to a point where it should be replaced.

The aspect of technology advancement in the milling processing sector discussed above gives us a fairly

good idea on development of pulse flour mill industry globally and in India on the background of

growing demands. Development in Machine capacities, Automation and End products are constantly

evolving to cope with consumer demands. External influence from market is driving technological

changes in machines and process and still trying to keep commercial viability. Obviously, there is still lot

of scope in milling sector for technological development / improvement of process as well as innovative

products.

2.4. State scenario– Technology circumstances Rajasthan has been the 2nd largest producer of Bengal Gram in India. Major trading centres of Chana in

the state are Jaipur, Bikaner, Kota, Jodhpur, Sriganganagar, and Hanumangarh. While the majority

processing units are traditional micro besan units, few small and medium scale semi-automatic/

automatic integrated dal and besan mill plants are also operating in the region. In some food retail

centers in shopping malls in Bhiwadi and Jaipur, more prominent brands of dals and besan like Tata I-

Rajasthan Agricultural Competitiveness Project 28

Shakti, Fortune, Reliance, Shakti bhog, Rajdhani, etc were more visible on shelves. However, some local

brands were also available in these retail chains are equally popular in small retail shops. Some of these

brands included ‘AgroPure’ promoted by AgroPure Group (NCR), ‘Shri Balaji’ promoted by Shri Balaji

Dall Mill (Rajasthan), ‘Gangaur Besan’ promoted by Mantri Agro Industries (Rajasthan). Some organic

dal and besan brands were also available. Some of the local companies have been targeting institutional

as well as retail clientele.

Typically, discussions with most millers pointed to below mentioned common technology gaps

(especially in micro units):

1. Currently, industrial besan milling in Rajasthan or even in several other states involves use of a

range of grinding machines and achieving the required granulation by sifting the flour with

rotary sifters. The individual lines have low capacity and an aggregate of mills and sifters are

used to meet the desired plant capacity - leading to huge machine footprint, difficult & time

consuming changeovers & higher operational & maintenance cost. Moreover, manual

operations and repetitive cleaning or changing of sieves increases the dust and brings down the

hygiene levels throughout the plant.

2. Storage of raw material by (integrated) dal mills is largely done in conventional government and

private godowns.

3. Several micro/small scale units (integrated dal and besan units) in the region may have deployed

inadequate pre-cleaning equipment and facilities. By and large, most micro units only use Rotary

Separators, destoners and gravity separators. However, use of modern fine cleaners, efficient

magnetic separators and advanced color sorters is limited to some advanced plants only.

4. Even in terms of standalone besan milling, several micro units have old fashioned pulverizers

leading to low recovery of besan. To obtain the required fineness of besan, milling function and

sieving could be repeated a few times. Whereas modern and highly efficient grinding system

produce the desired particle size in a single pass, thereby eliminating re-grinding and minimizing

yield losses.

5. Use of outdated technology grinders also leads to quality aberrations in grinding and sifting on

several occasions.

6. Some small and medium scale units have been upgrading their processes on regular basis to

ensure quality norms and market competitiveness. In this context, however, the cost of up

gradation is often high.

7. Most units using outdated and non-automatic technologies and engineering also complained of

high power and labour costs.

8. There is absence of efficient metal detector equipment in some besan units. All these aspects

lead to a high level of rejection (of acceptable quality material going away as reject quality)

affecting yield and profit margins of firms.

9. Most units have traditional machineries and automation at all levels of processing is fairly low

(except in some modern mills).

10. Packaging in most units is done manually and/or with use hand held stitching machines of jute/pp bags. Most units pack in wholesale (i.e. 50/25 kg packs) and very few (bigger besan mills) have ventured into retail sizes (i.e. 1 kg to 10 kg).

Rajasthan Agricultural Competitiveness Project 29

Chapter 3: Production and processing hubs/ clusters in Rajasthan

3.1. Production clusters in Rajasthan Pulses are grown in all three seasons in mainly Madhya Pradesh, Rajasthan, Maharashtra, Uttar Pradesh

and Andhra Pradesh. The three crop seasons for the commodity are:

Kharif – Arhar (Tur), Urad (Blackgram), Moong (Greengram), Lobia (Cowpea), Kulthi (Horsegram) and Moth;

Rabi – Gram, Lentil, Pea, Lathyrus and Rajmash

Summer – Green-gram, Black-gram and Cowpea

Major Green gram growing areas in Rajasthan are Nagaur and Jodhpur district but productivity is

highest in Jodhpur, Ganganagar, Ajmer and Bikaner districts. Jaipur, Jodhpur and Jalore regions are

important in terms of production volumes in Rajasthan. The important Green gram producing districts

of in RACP cluster zone include Nagaur followed by Ajmer, Jaipur and Tonk.

Table 6: Major assembling markets of Green gram in Rajasthan

Rajasthan Nagaur Nagaur

Merta city

Kucneman city

Tonk Malpura

Ajmer Kekri

Jodhpur Jodhpur

Rajasthan has been the 2nd largest producer of Bengal Gram in India. Major trading centres of Chana in

the state are Jaipur, Bikaner, Kota, Jodhpur, Sriganganagar, and Hanumangarh.

Table 7: Major assembling markets of Bengal gram in Rajasthan

Rajasthan Bikaner Bikaner

Bajju

Kucneman city

Ajmer Kekri

Chittorgarh Nimbahera

Rajasthan Agricultural Competitiveness Project 30

The processing hubs are in Jaipur and Bikaner. There are some 50 odd pulses processing plants in Rajasthan, some of which are also involved in besan milling. Some of the top brands include ‘AgroPure’ promoted by AgroPure Group (NCR), ‘Shri Balaji’ promoted by Shri Balaji Dall Mill (Rajasthan), ‘Gangaur Besan’ promoted by Mantri Agro Industries (Rajasthan).

Rajasthan Agricultural Competitiveness Project 31

Chapter 4: Manufacturing process and technology benchmarking

Pulse flours are an important value added processing opportunity for pulse sector. Strategic market

assessment has prioritized several key markets that will be targeted in the future for promotion of pulse

flours as a substitute for products derived from wheat flour. Food reformulation to substitute pulse

flours for ingredients from wheat, corn and soy is expected to drive demand for pulse flours or other

pulse ingredients in foods, which is leading to increased investment in pulse flour milling capacity.

Moreover, in context of Rajasthan, use of pulse flours like besan (a main ingredient of popular Bikaneri

bhujiya and several other delicacies) has been constantly increasing.

4.1. Manufacturing Process Chickpea has two stages of processing. In the first stage, there are two different processing practices

resulting in two products – the normal split chickpea dal and the roasted chickpea dal. In the second

stage, the normal split chickpea dal is further ground to produce chickpea flour (besan).

In the first stage, raw material pulses from farm are transported to unit for processing. The material

passes through several cleaning machines like reel machines, gravity separators, destoners, etc. Cleaned

and graded material will now be processed in dall mill, wherein; an emery roller machine (or with

abrasive diskroll) is used for cracking the husk layer and for scratching of clean pulses passing through

it. This is done for loosening the husk from sticking to the cotyledons in order to facilitate subsequent

oil penetration in the following unit operations. Gradually the clearance between the emery roller and

cage (housing) is narrowed from inlet to outlet. Cracking and scratching of husk takes place mainly by

friction between pulses and emery as the material is passed through the narrowing clearance. During the

operation some of the pulses are de husked and split which are separated by sieving. A screw conveyor

allows passing the scratched or pitted material through it and mixing of some edible oil like linseed

oil/mustard oil. Pulses coming out of the screw conveyer are kept on floors for about 12 hours to

diffuse the oil. Pulses are conditioned by alternate soaking/ wetting , drying and tempering. Moisture is

added to the pulses after drying (in wood or multi-fuel drier) for a certain period and tempering is done

for about eight hours. The grain is then dried again. Until all pulses are sufficiently conditioned, the

whole process of alternate wetting and drying is continued to ensure about 10% to 12% moisture

content is prevelant, prior to dehusking and splitting. For de-husking of conditioned pulses, they are

passed through emery rollers. Dehusked split pulses are separated by sieving and the husk is aspirated

off. For complete de-husking and splitting the whole process is repeated two to three times. The

Rajasthan Agricultural Competitiveness Project 32

processed product is now unpolished dall. This is further moved to the color sorting section to remove

any color and surface level defects.6

In the second stage the split dall and brokens are ready to be moved to the grinding unit to make besan.

The process detail is as under:

Besan Manufacturing Process

Typically, the process involves grinding / pulverizing of cleaned & color sorted splits and broken,

centrifuging to separate coarse and fine besan portions followed by dispatching. Different types of

grinding technologies (stone mill, hammer mill, pin mill, etc) based on type of product and application,

fineness, yield economics, etc are deployed by millers. In India, in general, most modern mills deploy

hammer mills or pin mills. Many mills also install pulverizer (hammer type, to crush splits and broken)

followed by grinding and sieving in hammer/pin mill machines to cater to different customers

demanding different grades/fineness of besan. The movement of the raw material in the mill is primarily

through bucket elevators. Magnets/Magnetic separators are installed to ensure removal of any ferrous

impurities in the raw material. Besan, after grinding, is transported pneumatically and in the process it is

separated in Cyclone type centrifugal equipment and the finer portion escaping from the centrifuge is

collected in cloth bags, fitted on the cyclone outlet.

So milled, separated besan and rawa (by-product) are then packed through packing spouts in bags.

Wholesale Packaging of Besan is done through an Automatic Weighing and Bagging machine, which

can pack besan in 10 kg-100 kg capacity bags. In general, 25 kg and 50 kg size bags are used in

wholesale. On an average, such bagging machines can give an output of 250 to even 500 bags per hour.

For retail packaging (i.e. ½ kg, 1 kg, 2 kg and 5 kg), a vertical form fill seal (VFFS) machine is used. In

both types of packaging, an augur filler type filling system is required. It is a filling mechanism which

measures out a product, usually powder or free flowing solids, using an auger which is rotated for a

predetermined number of revolutions in a conical hopper to discharge the required volume of product.

The main benefit of these machines is their ability to control dust during the filling operation and are

therefore used extensively for powders and dusty free flowing solids. To compensate for changes in the

bulk density of the product, auger filler is frequently used in conjunction with a weighing instrument like

a check-weigher. Fillers of this type are suitable for filling products at both low and medium speeds.

Testing: Quality control of besan begins as soon as split pulse is received at the mill premises. Pulses

are tested for protein content and ash content. The ash content is the portion which remains after

burning and consists of various minerals. During intervals of the grinding and centrifugal separation,

several samples are taken to ensure that no foreign matter ends up in the besan. The final product of

milling is tested for baking in test kitchens to ensure that it is suitable for the intended uses.

The vitamin and mineral content is measured to ensure that it complies with government standards.

6 Detailed dal milling process is presented in “Study Report of Innovative Technology based Business Model: Dal Mill”, prepared under the aegis of Rajasthan Agricultural Competitiveness Project.

Loading split

Chickpea/Broken

Packing Sieving of Ground

Flour-Besan

Grinding

Rajasthan Agricultural Competitiveness Project 33

4.2. Technology constraints and Benchmarking The global food industry is becoming ever more aware of the potential offered by pulses to deliver

innovative food products, with strong consumer attributes. A significant advantage of this is that new

techniques often reduce the amount of waste, which can add significantly to the overall efficiency of

besan production.

This traditional pulse flour industry is now transitioning to a new form, based on two types of mill: on

one side, modern high-volume mills, achieving efficiency through economies of scale to address the

mass markets, on the other side, smaller specialist mills - modern, hygienic and efficient - to satisfy niche

markets.

The older mills can be characterized as manually operated with high labor costs, poor energy efficiency,

low yields and product wastage. Additionally, they have poor dust extraction and machinery is prone to

break down. Fortunately, all of these issues are addressable, using state-of-the-art technologies.

Modernized mills will be more sustainable (both economically and environmentally), more commercially

viable and will help to generate wealth for their local communities.

In the near future, automation will be increasingly used to ensure consistent quantity and quality of

throughput. There will also be technological solutions for reducing processing time, improving hygiene,

increasing productivity and enhancing nutrition. These developments can be classified as improving

existing techniques and systems, but there is also considerable effort going into creating true innovation,

which will drive revolutionary solutions into the industry and open up new markets.

4.3. Benchmarking the Pulse Flour manufacturing process in key clusters at Rajasthan Some more significant pulse flour industries in India are located at MP, AP and Maharashtra. These may

be considered as reference cases for benchmarking purposes in terms of technology-levels. Many of

these firms constitute high capital intensive units that have constantly pursued technology upgrading

and established automatic milling plants procured from world leaders in equipment and technology such

as Buhler/Satake/Fowler Westrup/Cymbria. Even in terms of micro and mini units some of these

technologies can be easily incorporated to realize better yields and desired quality output.

Some of the advanced pulse flour mills in Rajasthan have deployed these machines, yet many micro and

small mills (especially in unorganized sector) use outdated technologies. Many besan units have deployed

basic versions of these technologies, which may not be as efficient as advanced versions. More

importantly, many units use semi-automatic machines, which also may have high power

consumption/alternatively high labour cost implication.

To summarize, the process of pulse flour milling by processors in the pulses clusters of Rajasthan

involves various activities which may be benchmarked in terms of best practices in other locations:

Rajasthan Agricultural Competitiveness Project 34

Sr. No. Process Traditional method in key clusters in Rajasthan Modern Method/s in more advanced units

1. Raw Material

Storage

(processed pulse

splits here) and

bulk handling

systems for pulse

flours

Storage of raw material (processed pulse splits here)

by millers in own or other private godowns leaves

the raw material subject to infestation by rodents and

pests. Modern and scientific warehousing systems

like dehumidifiers, temperature monitors, grain

handling equipment, etc are non-existent in such

facilities.

Often, lack of hygiene, pilferages, leakages,

improper handling of material, and various other

factors lead to losses in storage.

Modern technology involves raw material storage in silos made of

galvanized steel re-enforced exteriors. Galvanized Silos are used

for storage of grains in bulk for longer periods. These silos are

made in Galvanized Steel and bolted in construction. The main

parts of the silos are made in corrugated sheets instead of plain

sheet, which increases its strength. These silos are generally

equipped with accessories like Level Switches, Aeration System,

Temperature Monitoring, Ventilation and Sweep Augers. These

accessories help us to monitor the quality of stored grain inside

the silos.

Galvanized Silo Storage System is also a proven scientific system

for storage of pulses and other food grains in Europe and

America. This system ensures zero wastage that can be caused

by moisture, fungus & rodents etc. This also enables units to

target premium markets from quality-seeking consumers through

direct retailing and export. In India, this system is adopted to

some extent by the private sector. Fowler Westrup, Rostfrie

Steels, Westeel Silos, Buhler, Milltec, Bansal Group etc. are

some key supplier options of large silo storage systems.

Bulk flour handling systems include silos made of high tenacity

Trevira fabric that are watertight and suitable for the storage of

food powder products. Specially designed for flour storage, the

top portion of the silo sack acts as a filter, and the modular

supporting structure is composed of galvanized steel and allows

for quick assembly and disassembly. The high tenacity Trevira

fabric guarantees optimum oxygenation and a free flow of the

stored flour.

2. Raw Pulses

Cleaning and

Milling

Most pulses processing firms in the Rajasthan use

inadequate and outdated technology in pre-cleaning,

fine cleaning, drying and hulling operations.

Some small and medium scale units do deploy pre-

cleaners, de-stoners and gravity separators;

however, use of equipment like fine cleaners,

On the contrary, benchmarked dal milling equipment deployed in

larger firms at key clusters in MP, Maharashtra and Rajasthan

involves a complete cleaning and milling line. This includes

modern pre-cleaner (drum sieve), magnet separators, separator

classifiers, gravity separators, de-stoners, modern dryers, hullers

and color sorter.

In a nutshell, applying the above modern and more efficient

Rajasthan Agricultural Competitiveness Project 35

magnetic separators, advanced color sorters is

limited to rather modern plants. Even in context of

milling, many use outdated drying methods and

hullers, which lead to losses in yield as such

machines (on several occasions) have low

throughput capacities or alternatively lead to

improper de-husking and larger percentage of

broken.

As a matter of fact, improper and inefficient cleaning

reduces the price realization for processers as well

increases the danger of clogging of downstream

machines and thus increasing repairs and

maintenance costs and may also lead to reduced life

span of the machines.

In context of besan milling, which is second stage

milling pursed after dal milling, it is important that

unit receives cleaned and properly hulled and color

sorted splits.

systems ensures better quality, safer, more consistent finished

product for the besan plant.7

3. Besan Milling

Section Magnetic Separators: Many micro units do not use

adequate magnetic separators in their besan plants.

One reason is that millers procure cleaned and color

sorted splits from dal mill units. However, some

ferrous impurities may enter material during material

packing, material movement and transport. Some

other units may have deployed inefficient magnetic

separators.

Traditional Stone Mills/Hammer mills used for

grinding: Few of the major drawbacks of traditional

Stone mills (consisting of 2 dressed stone discs (one

stationary, other rotating)) at Rajasthan include

stone shavings getting mixed in besan, high

operational & maintenance cost (due to high

In relative comparison, technology and equipment in some

modern units at Rajasthan, MP and Maharashtra as well other

key locations considerably address the gaps associated with the

traditional systems. The milling section with benchmarked

technologies comprises of:

Modern Magnetic Separators: Modern magnetic separators

are suited for flaky and powdery products such as rawa and

besan, as well as for granular materials. These are equipped

with high magnetizing force for the optimal separation of

metal particles. This allows for optimal removal of all metal

particles at high throughput capacities and hence efficient

separation delivers a high level of product safety. Another

advantage resulting from superior separation is that potential

machine wear during subsequent processing steps is

7 Detailed study of gaps and technology benchmarking in dal milling process is presented in “Study Report of Innovative Technology based Business Model: Dal Mill”, prepared under the aegis of Rajasthan Agricultural Competitiveness Project.

Rajasthan Agricultural Competitiveness Project 36

abrasion), high energy / low throughput, difficulty in

maintaining consistent control quality, and higher

foot print requirement. Even those using disc mills or

traditional hammer mills have cited problems of low

throughput, lower yields and high energy costs.

Traditional centrifugal separators: As observed,

most old besan mills use outdated technology of

centrifugal separators. Problems associated with old

technology lead to inefficient besan and rawa

separation, low productivity, high power and labour

costs affecting profit margins of firms.

significantly reduced. New age magnetic separators are easy

to clean and maintain because of new and optimized designs.

Modern disc mills, hammer mills and Pin Mills: Modern

grinding machines are constructed with non-corrosive

material and full accessibility to ensure maximum sanitation.

In general, ‘cast iron discs’ have replaced the granite stones

(in stone mills) with more efficient grinding and throughput

capacities. Alternatively, modern stone chakki units have

adopted precision made stone chakkis. In this context,

Choyal make stones from Rajasthan have particularly

gained preference. Stone and shaft are in taper shape so

that both get adjusted automatically when the runner stone

is placed on the shaft. Importantly, the machine gives

maximum output and requires little maintenance.

Also, modern high speed hammer mills and pin mills are

now equipped with high throughput capacities and ensure

precise grinding in one stage, without need for double

grinding. Importantly new age pulverizers/grinding

equipments have compact structure and small footprint.

Many modern types of equipment have no sieve structure

and these facilitate crushing, wind grading and re-crushing

simultaneously. This also reduces power consumption. New

equipments are also equipped with a special muffler which

ensures reduced noise during milling.

Modern Centrifugal Separators: Modern Centrifugal

separators separate besan from rawa or other dense

particles efficiently to meet increasing quality requirements.

Food grade product-contact parts and energy savings are

the next major advanced features.

Some of the leading suppliers and turnkey technology

suppliers for above machines include Buhler, Flour Tech

Engineers, Choyal and Bansal Group.

4. Wholesale and

Retail Packaging

Wholesale Bagging: Most units in the region

use the cloth and pp bags packaging material

sourced through local dealers and agents from

Wholesale Packaging of products and by-products is done

through an Automatic Weighing and Bagging machine,

which can pack the besan in 10 kg-100 kg capacity bags. In

Rajasthan Agricultural Competitiveness Project 37

manufacturers in locations like the Hyderabad,

Gujarat, National Capital Region (NCR), etc.

Millers also use gunny bags sourced through

brokers locally. Firms mostly pack besan in 50

KG and 25 KG bags. The packaging operations

are largely tedious, time consuming and manual.

After filling and weighing the bags manually, a

basic hand held stitching equipment is used.

Benchmarked machine and equipment for same

involves automatic net weighing and bagging

system.

Retail Packaging: Most units in the region get

job work done from service providers for retail

packs like ½ kg, 1 kg, 2 kg and 5 kg. In this

context, the service/waiting time could be over

4-7 days. Some millers use manual filling

methods with simple heat sealing machines.

Benchmarked machine and equipment for same

involves Form-Fill-Seal machines, which is

deployed in some small and medium scale

besan mill units in Rajasthan.

general, 25 kg and 50 kg size bags are used in wholesale.

On an average, such bagging machine can give an output of

250 to even 500 bags per hour.

For retail packaging (i.e. ½ kg, 1 kg, 2 kg and 5 kg), a

vertical form fill seal (VFFS) machine is used.

In both types of packaging, an augur filler type filling system

is required. It is a filling mechanism which measures out a

product, usually powder or free flowing solids, using an

auger which is rotated for a predetermined number of

revolutions in a conical hopper to discharge the required

volume of product. The main benefit of these machines is

their ability to control dust during the filling operation and are

therefore used extensively for powders and dusty free

flowing solids. To compensate for changes in the bulk

density of the product, auger filler is frequently used in

conjunction with a weighing instrument like a check-weigher.

Fillers of this type are suitable for filling products at both low

and medium speeds.

Some reputed suppliers like Hassia Packaging, Nichrome, etc.

could be considered for machinery selection.

5. Testing and other

support activities Most units in Rajasthan do not have even basic

testing equipment for in-house quality check and

control. On several occasions, even such units are

required to outsource various tests from local as well

as distant accredited testing labs. The lead time in

some basic/key tests could range from couple of

days is to over a week.

Testing equipment comprising Digital and IR Moisture

Meter, hot air oven, ashing oven/muffle furnace, kjeldhal

apparatus, soxhlet apparatus, centrifuge, vortex stirrer,

sedimentation shaker, NIR grain analyzer, precision

weighing scales, glassware and chemicals, etc could be

required by miller unit as per requirements.

Some key tests like Moisture test (air oven method and IR),

protein content, Ash test, Acid content in soluble ash,

Sedimentation value, Water absorption test, Color test,

Alcoholic acidity test, baking tests, granulation tests, etc

may be conducted at shop floor for effective quality control.

Dealers of some reputed manufacturers like Agilent and Presto

Testing could be considered for testing equipment.

6. Support The support system majorly includes material

The support structure and equipment play a highly important

Rajasthan Agricultural Competitiveness Project 38

Equipments,

Engineering and

Automation

handling equipment (elevators, conveyors,

etc.), aspiration system (aspirators, cyclone,

airlock, fans, aspiration line and ducting, etc),

hoppers and storage bins, the machine support

structure, other mechanical fabricated

equipment and other support equipment

(compressor, etc). The quality of these

equipments is highly critical for overall

performance of the mill. However, in this

context many millers have sub-standard quality

system which leads to dusty environment,

leakages, clogging and breakdowns and other

related problems.

While some small and medium scale besan

mills have sound plant engineering, many other

mills suffer from improper set-up. On several

occasions, wrong engineering leads to

unnecessary material travel which further leads

to high energy costs, low sanitation, low

efficiency, additional manual interventions,

increased accident risks, low scope of

expansion/modernization, etc.

Most mills in Rajasthan have manual or semi-

automatic processes. Although this has helped

local employment, yet some non-skill human

interventions need up-scaling. Further, besan

being highly sensitive to contamination, high

manual interventions lead to increased risks.

role in the performance of the mill. Based on size and

capacity, appropriate milling engineering with appropriate

support structure and equipments need to be installed.

Since several machines function on vibration principle, it is

highly important that support structure is robust and shock

absorbent. Key suppliers like Buhler, Bansal Group, Flour

Tech Engineers, Choyal, Fowler Westrup, etc also supply

turnkey solutions in this context. Few other domestic options

include Aqua Engineering (Gujarat), Osaw Agro (Ambala),

etc. Compressors of Atlas Copco, ELGI or similar repute

make are highly preferred by millers to support packaging

operations other pneumatic functions.

Engineering of a besan mill depends on several factors such

as size/capacity, technology, type of raw material and level

of automation. The design decisions have a tremendous

impact on operational sanitation and maintenance. The plant

layout should present a smooth, orderly flow of raw

materials or ingredients through each manufacturing phase

on to the storage of the finished product.

All processes in besan mill can be optimized and controlled

through control panel i.e. automation. Process optimization

refers to operating the plant optimally with economic

performance in terms of productivity and yields. It also

avoids human errors. Scada systems are now integral part

of besan mill industry. Key turnkey plant suppliers like

Buhler, Bansal Group, Choyal, Fowler Westrup, etc provide

solutions on this front as well.

Rajasthan Agricultural Competitiveness Project 39

Chapter 5: Appropriate technology options

5.1. Appropriate technology options

5.1.1. Silo storage of Pulses splits and storage of besan

Poor storage facility leads to infestation by pests

depending on various factors like moisture content of

pulses, relative humidity, temperature, storage,

structures, fumigation frequency etc. Silos play a

critical role in this context and may be considered as

an essential part of a pre-cleaning line.

The silo system for split pulses (raw material for besan

mill) should ideally be built or configured according to

DIN 1055 standards made in galvanized steel of 450

GSM (grammas per cm square ft size coating).

Galvanized steel of 450 GSM will ensure longer life span of even 15-20 years of silos. Quality of raw

material stored in silos is stored in bulk directly in silos without use of gunny bags. This ensures reduced

loss due to rodents, wastage etc.

Typically, a 50 MT capacity silo comes with diameter of about 3.82 meters with height of over 11.03

meters and capacity of about 82.13 cu. meters. This volume can hold pulses of 50 MT based on bulk

density @ 600 kg/ m3 and 3% compaction. The silo comprises of a body of shallow corrugated panels,

galvanized outside stiffeners made from high tensile steel, hopper supporting and leg structure hot

dipped galvanized protection, vertical and roof ladder.

Silo accessories include sensors, that is, vibratory fork type high and low level

indicators provided for indicating the high and low levels of grain in a silo;

and discharge gates in terms of manually operated screw type discharge gates

provided at the bottom of the silo for controlling the flow of grain. In

addition, accessories include catwalks, goal post and silo cap support (for

supporting the overhead chain conveyor), receiving hopper, bucket elevator,

supporting structure for elevator and holding bin for cleaner; cyclone, rotary

air lock, chain conveyors made of GI steel; transfer chutes, ducting, spouts

and waste product chutes. Equipment suppliers such as Fowler Westrup

India Pvt. Ltd., Rostfrie Steels, Westeel Silos, Buhler Group, Milltec

Rajasthan Agricultural Competitiveness Project 40

Machinery, Bansal Group etc. have an established reputation in the field of galvanized silos.

For storage of besan, silos made of High Tenacity Trevira fabric are watertight and suitable for the

storage of food powder products. The top portion of the silo sack acts as a filter, and the modular

supporting structure is composed of galvanized steel and allows for quick assembly and disassembly.

Most suppliers provide custom-made silos to best fit into the space available at the customer’s premises,

and are assembled on site. The High Tenacity Trevira fabric guarantees optimum oxygenation and a free

flow of the stored flour. Generally, fabric silos offer a more economical alternative to stainless steel silos

in terms of overall cost of the system, ongoing maintenance, as well as installation cost. In addition,

fabric silos are anti-microbial for the highest levels of bacteria resistance. Return on investment is

usually much shorter with fabric silos.

4.3.1. Magnetic Separator: Magnets to remove ferrous metals should be installed during receipt of

split pulses as well as before packaging of besan. It is advisable to

have a magnet located at the beginning of the processing section to

remove metal and thus reduce the risk of a dust explosion before

the grain stream passes the main machines in the milling section.

Magnetic separators are

employed for the removal of

metal particles, e.g. nails, wire

and screws. The reliable

separating effect of an efficient

magnetic separator guarantees

the highest level of product and

process safety and eliminates metal particles from the material being

processed. Another advantage resulting from such superior

separation is that potential machine wear during subsequent

processing steps is significantly reduced.

4.3.2. Besan Milling- Pulverisers/Grinders: The production of pulse flours (besan) involves

grinding dehulled seeds/dal into small particles. To obtain a flour of more uniform particle size, ground

particles are passed through one or more screens. The grinding and

screening process may be done as separate processes, or may be

simultaneously performed in an automated mill, such as an impact

mill or roller mill. Modern versions of many of these grinders

facilitate crushing, wind grading and re-crushing simultaneously and

hence need not have additional requirement of a sieving structure.

New age milling machines now offer several advantages like compact

structure, small foot print, high classification efficiency ensuring

uniform particle size, are equipped with a special muffler which can

greatly reduce noise, and various such advantages. Below are some

technology options that can be deployed by besan mills.

Rajasthan Agricultural Competitiveness Project 41

a. Stone Milling: Stone mills are one of the oldest methods of attrition mills used in size

reduction of grains. Compression, shear and abrasion forces are responsible for reduction of the grain

into flour. Stone mills are typically equipped with a hopper and 2 horizontal or vertical stones lying

parallel to one another. One stone remains stationary while the

other stone rotates at a set speed, the latter is known as the

running stone. In order to adjust the maximum particle size of

the flours, the gap width between the stones is adjusted. A

narrower gap produces flours of a smaller maximum particle

size while a wider gap produces flours of a larger maximum

particle size. A hopper delivers the grain into the centre of the

stone where the grain settles into furrows which have been cut

into the surface of the stationary stone. As the running stone

rotates, the grain moves radially through the furrows and is reduced in size until it is exits at the

circumference of the stone.

b. Hammer Milling: Hammer mills are typically equipped with a hopper and a rotor with

hammers mounted at equidistance surrounded by a perforated screen.

As the rotor spins at high speeds, the hammers swing and impact the

grain flowing from the hopper. The maximum particle size of the flour

is dependent on the size of the

perforations in the screen and therefore it

is possible to produce a variety of flours

varying from fine to coarse granulation.

Other designs of hammer mills use an air

flow stream rather than perforated

screens to separate milled material based

on size. There are many advantages of using a hammer mill to produce

pulse flours. Hammer mills are capable of grinding the tough hull of the

seed, are easy to operate, have a relatively low initial cost to purchase and

install, and maintenance requirements are minimal. One disadvantage to

hammer milling is that when milling conditions are not optimized there will be higher energy costs

associated with the operation of the mill. In addition, if the desired flour granulation is very fine, heat

may be generated during milling which can affect flour properties. The greatest limitation to hammer

milling is the wide range of particle sizes produced in the flour.

c. Pin Milling: Pin mills are impact mills which are equipped with 2 disks of interlocking round

pins. Impact is the main force involved in the breakdown of the particles,

fracturing the grain along axes of least

resistance. No screens are used and generally,

ultrafine flour particles are produced. The

particle size of the flour can be altered by

changing the speed of the rotation of the

disk(s). Where possible, relatively finer flours

may be produced when disks are counter

rotated rather than when one disk is held

stationary while one disk rotates. Some pulses

Rajasthan Agricultural Competitiveness Project 42

may be subjected to pin milling twice for obtaining fine grade flour. The pin-milled flour is air classified

in a spiral air stream and fractioned into light and heavy particles.

d. Roller Milling: Roller mills are the most common grinding method

for the reduction of grain, particularly wheat,

into flour. This method involves the gradual

reduction of the endosperm into flour using a

series of pairs of rotating steel rollers, counter

rotating towards each other, either corrugated

(break rolls) or smooth (reduction rolls) and

sieving steps to separate the flour from the

bran or in the case of pulses, the hull fraction.

The paired rolls rotate at a differential speed.

The forces involved in the reduction of the grain are due to abrasion, shear and compression. The

aggressiveness of these forces can be altered with a change in the cut, depth, and spiral of the

corrugation, together with the rotation differential.

4.3.3. Centrifugal Machine: A centrifuge is a piece of equipment

that puts an object in rotation around a fixed axis (spins it in a circle),

applying a potentially strong force perpendicular to the axis of spin

(outward). The centrifuge works using the sedimentation principle,

where the centripetal acceleration causes denser substances and

particles to move outward in the radial direction. At the same time,

objects that are less dense are displaced and move to the centre. This

machine is used to sieve besan.

4.3.4. Weighing and dosing systems: Accurate weighers are most important for recording the

weight of purchased raw materials and sold finished products. Correct recording of these weights

directly influences the success of the bottom line. Scales are used for control of the performance of the

various processing steps, such as cleaning, grinding, seiving as well as to determine moisture loss in the

finished- product area.

4.3.5. Air systems in the mill: Aspiration systems in the mill enable machines like centrifugal

separators to work properly and also are used to keep systems from emitting dust. Aspiration is used to

control airflow by ensuring that the negative pressure inside machines and conveying elements is higher

than the outside pressure. Pneumatic systems are primarily used to lift product within the milling

system. These air-based conveying systems not only transport product but at the same time provide

aspiration for the grinding mills. Compressed- air systems are used throughout the plant to provide

operation air for pneumatic valves, slides, scales, and bagging equipment. All these air systems are major

energy users, and lately great effort has been made to reduce their energy consumption. Optimized

calculations and usage of frequency converters for compressors, rinsing air systems, and pneumatic

conveying systems have resulted in energy savings.

4.3.6. Packaging of products and by-Products: In Wholesale Packaging,

automatic bagging equipment consists of a microprocessor controller, load

cells, weigher and discharge chute with bag holder. The Microprocessor

controls the whole machine to achieve and deliver the target weights i.e., 10,

25/30, 50 KG etc. and can be easily programmed by the user for required

target weights. Once the material reaches the target weight, it discharges into

Rajasthan Agricultural Competitiveness Project 43

the bag. The filled bag is then de-clamped on slat conveyor which helps the bag to reach the Stitching

Machine for bag closing.

A user friendly interface allows the operator to pre-select settings to obtain optimum operation and

simple, easy adjustment of bag width and length to accommodate different bag sizes. This equipment

saves labor hours and is easy to operate, hence, increases productivity.

In Consumer packaging, a Vertical-Form-Fill-Seal (VFFS) machines helps in packaging of besan in 1, 2

and 5 kg sizes. The equipment produces pillow and other pouches type like

block bottom, etc with centre seal. One kg capacity pouches can be filled at

the rate of even 24-26 pouches per minute. Typically, machine construction

is of M.S. and product contact parts are of S.S. The equipment comes with

forming collar and pipe, pneumatic cylinders to perform sealing, knife to cut

and seal cooling, splicing unit for easy roll change over, etc.

Both machines require a compressor and voltage stabilizer (in case of

abnormal fluctuations in power supply). In both types of packaging, an

augur filler type filling system is required. It is a filling mechanism which measures out a product, usually

powder or free flowing solids, using an auger which is rotated for a predetermined number of

revolutions in a conical hopper to discharge the required volume of product. The main benefit of these

machines is their ability to control dust during the filling operation and are therefore used extensively

for powders and dusty free flowing solids. Fillers of this type are suitable for filling products at both low

and medium speeds.

4.3.7. Support Equipment, Engineering and Automation The support structure and equipment

play a highly important role in the performance of the mill. Based on size,

capacity and milling engineering, the support structure and equipment

need to be installed. Since several machines function on vibration

principle, it is highly important that support structure is robust and shock

absorbent. In most modern mills, one can easily observe compliance in

this context. Moreover, the key principles that govern benchmarking in

material handling and support equipment are: high efficiency, low power

consumption, easy and minimum maintenance, durability and long

lifetime, smooth operation and movement direction control switch for

safety precaution. Key suppliers like Buhler, Bansal Group, Choyal,

Fowler Westrup, etc also supply turnkey solutions in this context. Few

other domestic options include Aqua Engineering (Gujarat), Osaw Agro (Ambala), etc. Compressors of

Atlas Copco, ELGI or similar repute make are highly preferred by millers to support colour sorting and

packaging operations and to support other pneumatic functions.

Engineering of a Besan Mill depends on several factors such as size/capacity, technology, type of raw

material and level of automation. Design decisions have a tremendous impact on operational sanitation

and maintenance. The plant layout should present a smooth, orderly flow of raw materials or ingredients

through each manufacturing phase on to the storage of the finished product. Lean manufacturing

engineering design which ensures maximum efficiency, low energy pressures and adherence to safety

norms is the broad benchmark in the industry.

All processes in a pulse flour mill can be optimized and controlled through control panel i.e.

automation. Process optimization refers to operating the plant optimally with high economic

Rajasthan Agricultural Competitiveness Project 44

performance in terms of productivity and yields. It also avoids human errors. Scada systems are now

integral part of flour mill industry. Automation ultimately

leads to higher productivity and ease of operation. New

concept of Internet of things (IoT) has a great potential to

make manufacturing process smarter and predictive. The

Internet of Things is also becoming a part of food industry

and it cannot be ignored as skilled/ technical workforce will

be a challenge for future. IoT as such monitors system,

diagnoses problem and provides actionable information

which in turn helps prevent problems both on Material and Equipment side. It allows operator to

identify problems before it happens and take diagnostic action.

Rajasthan Agricultural Competitiveness Project 45

Chapter 6: SWOT of technology

6.1. SWOT Analysis of the technology

The SWOT analysis of the modern technology in pulse flour milling proposed in the above chapter is as

under:

Strength Weakness

1. Modern technology facilitates higher

efficiency and productivity.

2. Use of modern storage systems will ensure

proper hygiene and largely reduced

incidences of pilferages, leakages, improper

handling of material, and various other

factors that lead to losses in storage.

3. Use of modern magnetic separators

eliminates impurities that pose a significant

risk to health and safety.

4. The use of modern technology may help

reduce the yield losses.

5. Use of modern magnetic separators also

eliminates impurities which impact

downstream machine efficiency.

6. Modern milling and sieving methods facilitate

relatively higher separation of besan, thus

ensure higher recovery.

7. The use of modern technology will enable

production of premium quality pulse flour,

and thus ensure better margins.

8. New age machines, having small footprint,

facilitate pulverizing to required fineness and

thus reduce the need for multiple grinders

and sieving equipment. This has reduced the

need for larger space for plant installation.

9. Use of modern pulverizers with larger

throughput capacities ensure higher

production and reduced breakdowns.

10. Modern machines have non-corrosive

material such as stainless steel or food grade

plastics, which further supports the food

safety approach.

11. Pulse Flour lends itself to making snack food

1. The adoption rate of latest technology

innovation could be low among the millers

due relatively high capital investment

involved.

2. Modern technology with higher capacities

also increases working capital requirements.

3. Mere adding of few recommended machines

in an existing traditional mill may not yield

optimum results due to capacity

mismatch/disequilibrium in the complete

process.

4. Lack of awareness regarding the latest

innovations in the pulse flour milling is

another reason for low rate of adoption

among millers.

5. Lack of proper backward integration or even

irregular supply of raw material discourages

some entrepreneurs to invest in modern

technologies with large capacities.

6. Existing micro scale millers have units set up

in limited spaces. Modernization may require

larger area in some cases.

7. New technologies require manpower to

upgrade their skills for handling operations. In

some cases, such skilled labour may not be

easily available locally or only higher

remuneration could attract such manpower.

8. Initial high cost could be incurred in launching

pulse flour product brands.

9. Introduction of household pulse flour mills or

box chakkis and wider use by consumers will

lead to lowering of demand in markets.

Rajasthan Agricultural Competitiveness Project 46

items. There is scope in some pasta and

bakery products wherein pulse flours can

replace some percentage of wheat flour as

the basic ingredient. These extruded and

baked food products are meant for direct

consumption. Market for such foods is

growing rapidly.

12. Modern packaging methods significantly

reduce man hours spent on the activity, while

considerably increasing the accuracy in

weighing and stitches/sealing.

13. Scientific design and engineering of modern

pulse flour mill facilitates optimum space

utilization, reduced leakages, reduced power

consumption (by power saving in processes),

better product output and manpower safety.

14. Automation in the mill can decrease the

dependency on the labour contractors. It also

ensures minimum human handling of

products.

15. Automation can also help real-time

identification of problems and immediate

trouble shooting.

Opportunity Threat

1. Scope for technology upgradation.

2. Large scope of tapping the ‘Gluten Free’

products market.

3. Key schemes of Central Govt. (like Kisan

Sampada, etc) and State Govt. could be

utilized to set up most modern plants.

4. Changes in lifestyle, such as longer work

hours, higher disposal incomes, growth in

online purchase, working women,

convenience lifestyle, etc have increased the

demand for packaged pulse flours.

5. Branding offers huge potential for product

promotion.

6. Increased interest in health and nutrition is

creating demand for some properly

processed pulse flours and other packaged

products.

7. FPOs can invest in mini versions of

recommended technologies, which are

developed by Institutes like CFTRI and even

other reputed private players.

8. FPOs who upgrade with mini mills will be

able to produce quality products and directly

penetrate in premium markets.

9. Opportunity to penetrate the growing market

of packaged pulse flours.

10. Increasing market demand for pulse flours

with better quality product- with least

contamination.

1. Automation does leads to lesser jobs

(especially for unskilled jobs).

2. Competition with large players could mean

thin margins in marketing of products.

3. Rapid developments in contemporary

markets and requirements of the industry

may lead to fast obsolescence.

4. Technology once obsolete would require re-

investment for upgradation.

5. Technology breakdown for a longer period

may have much higher cost implications than

a labour intensive firm.

Rajasthan Agricultural Competitiveness Project 47

11. Higher value realization to millers by way of

higher yields and production of premium

quality pulse flour products.

12. Scope of large scale backward integration

with Farmers Groups/FPOs to integrate

procurement and production and marketing

operations.

13. Opportunity to custom mill for mega players

in market. Custom milling offers three

specific advantages to the pulse flour

marketer (1) Ability to customize pulse flours

to the specific requirement of a particular

market (2) Flexibility to upscale or downscale

production volumes in line with seasonal

variations in demand in the shortest possible

time and (3) a cost advantage due to

differential labour costs structure.

Rajasthan Agricultural Competitiveness Project 48

Chapter 7: Indicative project profile for Rajasthan

7.1 Indicative project Profiles

This section of the report outlines three project profiles that could be referred by entrepreneurs to select

their most suitable option. Broadly, one micro scale, one small scale and one medium scale investment

option has been showcased primarily to suit the investment capabilities of the entrepreneurs. Section

7.1, 7.2 and 7.3 of this chapter individually showcase the financial feasibility of these projects.

a. Section 7.1 showcases a micro scale model, which can be pursued as guiding model by small

farmers or individual entrepreneurs, farmer groups, farmer producer association/companies.

The technology proposed for this segment involves Mini Semi-Automatic 4 TPD capacity

Besan Milling unit which comprises of a Pulverizer, Centrifugal Filter, material handling

equipment and tanks, aspiration system, cabling and control panel, weighing machine and

stitching machine. The total cost of the complete set of Main P&M, on basis of some referred

quotations of leading suppliers in the segment, is Rs. 11.25 Lakhs. This is inclusive of taxes,

transportation, installation and commissioning charges.

b. Section 7.2 showcases a small scale model, which can be pursued as guiding model by small

scale entrepreneurs, farmer producer association/companies. The technology proposed for this

segment involves Semi-Automatic 20 TPD Besan Milling unit which comprises of Magnetic

Separators, Pin Mill and Pulverizer, Centrifugal Separator, support structure, storage tanks and

material handling equipment, aspiration system, cabling and control panels and weighing and

bagging machine. The total cost of the complete set of Main P&M, on basis of some referred

quotations of leading suppliers in the segment, is Rs. 64.28 Lakhs. This is inclusive of taxes,

transportation, installation and commissioning charges.

c. Section 7.3 showcases a small scale fully automatic model, which can be pursued as guiding

model by some small scale entrepreneurs or institutions. The technology proposed for this

segment involves Fully Automatic 50 TPD Besan Mill Plant. The main plant and machinery

include magnetic separators, Hammer Mill and Pulverizer, High Pressure Filters, complete

support structure, storage tanks and material handling equipment, aspiration system, cabling

and control panels, weighing and bagging machine and packing machine, pneumatics and

automation system and lab equipment. The total cost of the complete set of Main P&M, on

basis of some referred quotations of leading suppliers in the segment, is Rs. 264.39 Lakhs. The

cost of Utilities (Weighbridge, etc), on basis of some referred quotations of leading suppliers, is

Rajasthan Agricultural Competitiveness Project 49

Rs. 25.00 Lakhs. This is inclusive of taxes, transportation, installation and commissioning

charges.

7.1. Project Profile 1: Micro Scale Unit

7.1.1. Premises of Calculation- Suggested Model (a) Details of Technical Civil Works/ Building Cost

Sr. No Particulars Plan Area- Sq. Ft.

Rate/ sq. ft. Amount (in Rupees)

1 Factory Civil and Shed Works 1500 630 945,000.00

2 Boundary chain link and minor civil work Lump sum 40,000.00

Total (in Rupees) 985,000.00

(b) Plant & Machinery Breakup Sr. No. Item Capacity Amount

(in Rupees)

1 Main Plant & Machinery 4 TPD 1,125,000.00

Total INR 1,125,000.00

The proposed P&M for this segment involves Mini Semi-Automatic 4 TPD capacity Besan

Milling unit which comprises of a Pulverizer, Centrifugal Filter, material handling equipment

and tanks, aspiration system, cabling and control panel, weighing machine and stitching

machine. The total cost of the complete set of Main P&M, on basis of some referred quotations

of leading suppliers in the segment, is Rs. 11.25 Lakhs. This is inclusive of taxes, transportation,

installation and commissioning charges.

Other Assumptions 1 Working Hours per day 8 hours

2 Plant Capacity /Day 4 TPD

3 No. of Working Days in a year 300

4 Power Requirement 36 KVA

5 Standard Packaging for Main Products & By-Products 50 Kg Packing (besan), 100 kg packing (rawa)

6 Insurance Exp Considered on Plant & Mach, Building 0.5% of Capex

7 Inflation assumed annually 5% annually

8 Debtors 15 Days of Sales

9 Stock of Finished Goods 30 Days of Production

10 Stock of Raw Material 1 Months Consumption

7.1.2. Project Cost

# Particulars Amount (in Rupees)

1 Land -

2 Building 985,000.00

3 Plant & Machinery 1,125,000.00

4 Misc Fixed Assets 25,000.00

5 Preliminary & Preoperative 25,000.00

6 Working Capital Margin 782,750.00

Total (in Rupees) 2,942,750.00

The total project cost is Rs. 29.43 Lakhs

It is assumed that upon considering the requirement by way of buildings and other civil works, installation of machinery and provision for stocking material, it is perceived that a suitable plot of land will be leased by entrepreneur.

Miscellaneous fixed assets will include furniture & electrical fixtures, etc which are pegged at Rs. 25,000.

Preliminary expenses and Preoperative expenses are pegged to be Rs. 25,000.

Rajasthan Agricultural Competitiveness Project 50

The Total Working Capital requirement during the first year of operation is estimated at Rs. 31.31 Lakhs with margin money requirement of Rs. 7.83 Lakhs. Calculations of same are presented in section 7.1.12.

7.1.3. Means of Finance # Particulars Amount (in Rupees)

1 Bank Term Loan 2,000,000.00

2 Promoter's Capital 942,750.00

Total (in Rupees) 2,942,750.00

It is assumed that Rs 20.00 Lakhs will be sought as Term Loan from Bank.

7.1.4. Product Schedule Particulars Y1 Y2 Y3 Y4 Y5

Besan Mill Capacity (MT/Day) 4 4 4 4 4

Working Days in Year 300 300 300 300 300

Annual Chickpea Split & Broken Requirement @ 100% CU 1200 1200 1200 1200 1200

Capacity Utilization 65.00% 70.00% 75.00% 80.00% 85.00%

Total Input of Chickpea Split (in MT) 741 798 855 912 969

Total Input of Chickpea Broken (in MT) 39 42 45 48 51

Total Input (in MT) 780 840 900 960 1020

Output (MT)

Besan Mill

Besan 741 798 855 912 969

Rawa 23 25 27 29 31

Normal loss 16 17 18 19 20

Tonnes processed / day 4 4 4 4 4

No. of days of operation 195 210 225 240 255

7.1.5. Purchase Schedule Particulars Y1 Y2 Y3 Y4 Y5

Chickpea Split (MT) 803 803 859 917 974

Purchase Price (in Rs./MT)

50,000.00 52,500.00 55,125.00 57,881.00 60,775.00

Chickpea Split Purchases 40,150,000.00

42,157,500.00

47,352,375.00

53,076,877.00

59,194,850.00

Chickpea Broken (MT) 42 43 45 48 51

Purchase Price (in Rs./MT)

42,000.00 44,100.00 46,305.00 48,620.00 51,051.00

Chickpea Broken Purchases

1,764,000.00 1,896,300.00 2,083,725.00 2,333,760.00 2,603,601.00

Total Purchases (in Rs.) 41,914,000.00

44,053,800.00

49,436,100.00

55,410,637.00

61,798,451.00

Rajasthan Agricultural Competitiveness Project 51

7.1.6. Consumables Packaging Material No. of Bags Cost of Packaging Material

Size Product Rate/ bag

Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5

50 KG Besan 18 14820 15960 17100 18240 19380 266760 287280 307800 328320 348840

100 kg Rawa 50 230 250 270 290 310 11500 12500 13500 14500 15500

Total 15050 16210 17370 18530 19690 278,260.00 299,780.00 321,300.00 342,820.00 364,340.00

7.1.7. Power Requirement The total requirement of the plant (including admin building power req.) is 36 KVA. 7.1.8. Water Requirement Water 1000 Litres/day

Total 1000 Litres/day

Cost/KL= Rs. 10/KL i.e.10 Rs. Daily

7.1.9. Manpower Requirement # Particulars No. Monthly Salary Annual Income Dept.

1 Factory Head 1 8,000.00 96,000.00 factory

2 Accounts Head 1 8,000.00 96,000.00 Admin

3 Marketing and Business Development Head 1 8,000.00 96,000.00 Admin

4 Sales Executives 1 6,000.00 72,000.00 Admin

5 Admin Staff 1 4,000.00 48,000.00 Admin

6 Security Staff 1 6,000.00 72,000.00 Admin

Total 6 40,000.00 480,000.00

Helpers 3 300/day factory

Total Manpower 9

Rajasthan Agricultural Competitiveness Project 52

7.1.10. Depreciation Schedule Particulars Building Plant & Machinery Misc. Fixed assets Total Rs.

Rate of Depreciation 10% 15% 10%

Opening WDV 985,000.00 1,125,000.00 25,000.00 2,135,000.00

Total 985,000.00 1,125,000.00 25,000.00 2,135,000.00

Dep. For 1st Year 98,500.00 168,750.00 2,500.00 269,750.00

W.D.V. as on II Year 886,500.00 956,250.00 22,500.00 1,865,250.00

Dep. For 2nd Year 88,650.00 143,440.00 2,250.00 234,340.00

W.D.V. as on III Year 797,850.00 812,810.00 20,250.00 1,630,910.00

Dep. For 3rd Year 79,790.00 121,920.00 2,030.00 203,740.00

W.D.V. as on IV Year 718,060.00 690,890.00 18,220.00 1,427,170.00

Dep. For 4th Year 71,810.00 103,630.00 1,820.00 177,260.00

W.D.V. as on V Year 646,250.00 587,260.00 16,400.00 1,249,910.00

Dep. For 5th Year 64,630.00 88,090.00 1,640.00 154,360.00

W.D.V. as on VI Year 581,620.00 499,170.00 14,760.00 1,095,550.00

7.1.11. TL Repayment Schedule Loan Amount 2,000,000.00

Rate 10.00% In Rupees

Monthly Loan amount Monthly Repayment' Interest Total Instl. Closing Bal

1 2,000,000.00 33,333.33 16,388.89 49,722.22 1,966,666.67

2 1,966,666.67 33,333.33 16,111.11 49,444.44 1,933,333.33

3 1,933,333.33 33,333.33 15,833.33 49,166.66 1,900,000.00

4 1,900,000.00 33,333.33 15,555.56 48,888.89 1,866,666.67

5 1,866,666.67 33,333.33 15,277.78 48,611.11 1,833,333.33

6 1,833,333.33 33,333.33 15,000.00 48,333.33 1,800,000.00

7 1,800,000.00 33,333.33 14,722.22 48,055.55 1,766,666.67

8 1,766,666.67 33,333.33 14,444.44 47,777.77 1,733,333.33

9 1,733,333.33 33,333.33 14,166.67 47,500.00 1,700,000.00

10 1,700,000.00 33,333.33 13,888.89 47,222.22 1,666,666.67

11 1,666,666.67 33,333.33 13,611.11 46,944.44 1,633,333.33

12 1,633,333.33 33,333.33 13,333.33 46,666.66 1,600,000.00

13 1,600,000.00 33,333.33 13,055.56 46,388.89 1,566,666.67

14 1,566,666.67 33,333.33 12,777.78 46,111.11 1,533,333.33

15 1,533,333.33 33,333.33 12,500.00 45,833.33 1,500,000.00

16 1,500,000.00 33,333.33 12,222.22 45,555.55 1,466,666.67

17 1,466,666.67 33,333.33 11,944.44 45,277.77 1,433,333.33

18 1,433,333.33 33,333.33 11,666.67 45,000.00 1,400,000.00

19 1,400,000.00 33,333.33 11,388.89 44,722.22 1,366,666.67

20 1,366,666.67 33,333.33 11,111.11 44,444.44 1,333,333.33

21 1,333,333.33 33,333.33 10,833.33 44,166.66 1,300,000.00

22 1,300,000.00 33,333.33 10,555.56 43,888.89 1,266,666.67

23 1,266,666.67 33,333.33 10,277.78 43,611.11 1,233,333.33

24 1,233,333.33 33,333.33 10,000.00 43,333.33 1,200,000.00

25 1,200,000.00 33,333.33 9,722.22 43,055.55 1,166,666.67

26 1,166,666.67 33,333.33 9,444.44 42,777.77 1,133,333.33

27 1,133,333.33 33,333.33 9,166.67 42,500.00 1,100,000.00

28 1,100,000.00 33,333.33 8,888.89 42,222.22 1,066,666.67

29 1,066,666.67 33,333.33 8,611.11 41,944.44 1,033,333.33

30 1,033,333.33 33,333.33 8,333.33 41,666.66 1,000,000.00

31 1,000,000.00 33,333.33 8,055.56 41,388.89 966,666.67

32 966,666.67 33,333.33 7,777.78 41,111.11 933,333.33

Rajasthan Agricultural Competitiveness Project 53

33 933,333.33 33,333.33 7,500.00 40,833.33 900,000.00

34 900,000.00 33,333.33 7,222.22 40,555.55 866,666.67

35 866,666.67 33,333.33 6,944.44 40,277.77 833,333.33

36 833,333.33 33,333.33 6,666.67 40,000.00 800,000.00

37 800,000.00 33,333.33 6,388.89 39,722.22 766,666.67

38 766,666.67 33,333.33 6,111.11 39,444.44 733,333.33

39 733,333.33 33,333.33 5,833.33 39,166.66 700,000.00

40 700,000.00 33,333.33 5,555.56 38,888.89 666,666.67

41 666,666.67 33,333.33 5,277.78 38,611.11 633,333.33

42 633,333.33 33,333.33 5,000.00 38,333.33 600,000.00

43 600,000.00 33,333.33 4,722.22 38,055.55 566,666.67

44 566,666.67 33,333.33 4,444.44 37,777.77 533,333.33

45 533,333.33 33,333.33 4,166.67 37,500.00 500,000.00

46 500,000.00 33,333.33 3,888.89 37,222.22 466,666.67

47 466,666.67 33,333.33 3,611.11 36,944.44 433,333.33

48 433,333.33 33,333.33 3,333.33 36,666.66 400,000.00

49 400,000.00 33,333.33 3,055.56 36,388.89 366,666.67

50 366,666.67 33,333.33 2,777.78 36,111.11 333,333.33

51 333,333.33 33,333.33 2,500.00 35,833.33 300,000.00

52 300,000.00 33,333.33 2,222.22 35,555.55 266,666.67

53 266,666.67 33,333.33 1,944.44 35,277.77 233,333.33

54 233,333.33 33,333.33 1,666.67 35,000.00 200,000.00

55 200,000.00 33,333.33 1,388.89 34,722.22 166,666.67

56 166,666.67 33,333.33 1,111.11 34,444.44 133,333.33

57 133,333.33 33,333.33 833.33 34,166.66 100,000.00

58 100,000.00 33,333.33 555.56 33,888.89 66,666.67

59 66,666.67 33,333.33 277.78 33,611.11 33,333.33

60 33,333.33 33,333.33 - 33,333.33 -

TOTAL - 966,666.67 362,500.00 1,329,166.67 -

7.1.12. Projected Working Capital Requirement Particulars Y1 Y2 Y3 Y4 Y5

Debtors 1,658,833.00 1,953,022.00 2,195,155.00 2,461,948.00 2,747,122.00

Stock of F.G 1,739,000.00 1,942,500.00 2,223,200.00 2,462,840.00 2,720,887.00

Stock of R.M 3,226,000.00 3,693,900.00 4,099,095.00 4,593,436.00 5,126,979.00

Less Creditor 3,492,833.00 3,671,150.00 4,119,675.00 4,617,553.00 5,149,871.00

Total Working Cap Required 3,131,000.00 3,918,272.00 4,397,775.00 4,900,671.00 5,445,117.00

W.C Margin 782,750.00 979,568.00 1,099,444.00 1,225,168.00 1,361,279.00

W.C Loan 2,348,250.00 2,938,704.00 3,298,331.00 3,675,503.00 4,083,838.00

7.1.13. Sales Schedule Particulars Y1 Y2 Y3 Y4 Y5

Besan (MT) 710 796 852 910 967

Sale Price (in Rs. Per MT)

55500 58275 61189 64248 67460

Besan Sales 39,405,000.00

46,386,900.00

52,133,028.00

58,465,680.00

65,233,820.00

Rawa (MT) 22 25 27 29 31

Sale Price (in Rs. Per MT)

18500 19425 20396 21416 22487

Rawa Sales 407,000.00 485,625.00 550,692.00 621,064.00 697,097.00

Total Sales 39,812,000.00

46,872,525.00

52,683,720.00

59,086,744.00

65,930,917.00

Rajasthan Agricultural Competitiveness Project 54

7.1.14. Projected Balance Sheet Particulars Y1 Y2 Y3 Y4 Y5

(A) LIABILITIES

Partner's Capital 942,750.00 942,750.00 942,750.00 942,750.00 942,750.00

Add: Addition During the Year

- - - - -

Total Capital 942,750.00 942,750.00 942,750.00 942,750.00 942,750.00

Reserves & Surplus

RACP Grant - - - - -

Profit & Loss

Opening Balance - 582,596.67 1,549,640.93 2,786,110.50 4,309,494.87

Add: Profit after tax 582,596.67 967,044.26 1,236,469.57 1,523,384.37 1,830,124.86

Total 582,596.67 1,549,640.93 2,786,110.50 4,309,494.87 6,139,619.73

Secured Loan From Bank 2,000,000.00

2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00

W. Capital Loan 2,348,250.00

2,938,704.00 3,298,331.00 3,675,503.00 4,083,838.00

Current Liability 3,492,833.00

3,671,150.00 4,119,675.00 4,617,553.00 5,149,871.00

Total ( A ) 9,366,429.67

11,102,244.93

13,146,866.50

15,545,300.87

18,316,078.73

(B) ASSETS

Fixed Assets

Gross Block 2,135,000.00

1,865,250.00 1,630,910.00 1,427,170.00 1,249,910.00

Less : Depreciation 269,750.00 234,340.00 203,740.00 177,260.00 154,360.00

Net Block 1,865,250.00

1,630,910.00 1,427,170.00 1,249,910.00 1,095,550.00

Misc Fixed Assets 20,000.00 15,000.00 10,000.00 5,000.00 -

Current Assets

Sundry Debtor 1,658,833.00

1,953,022.00 2,195,155.00 2,461,948.00 2,747,122.00

1,658,833.00

1,953,022.00 2,195,155.00 2,461,948.00 2,747,122.00

Closing Stock

Closing Stock FG 1,739,000.00

1,942,500.00 2,223,200.00 2,462,840.00 2,720,887.00

Closing Stock RM 3,226,000.00

3,693,900.00 4,099,095.00 4,593,436.00 5,126,979.00

4,965,000.00

5,636,400.00 6,322,295.00 7,056,276.00 7,847,866.00

Cash & Bank Balance 857,346.67 1,866,912.93 3,192,246.50 4,772,166.87 6,625,540.73

(Including Cash Credit Limit)

Total ( B ) 9,366,429.67

11,102,244.93

13,146,866.50

15,545,300.87

18,316,078.73

7.1.15. Projected Profit and Loss Statement

Particulars Y1 Y2 Y3 Y4 Y5

Total Sales 39,812,000.00

46,872,525.00

52,683,720.00

59,086,744.00

65,930,917.00

Less:- Opening Stock of F.G.

- 1,739,000.00 1,942,500.00 2,223,200.00 2,462,840.00

Add:-Closing Stock of F. G. 1,739,000.00 1,942,500.00 2,223,200.00 2,462,840.00 2,720,887.00

Cost of Finish Goods 41,551,000.00

47,076,025.00

52,964,420.00

59,326,384.00

66,188,964.00

Rajasthan Agricultural Competitiveness Project 55

Raw Material Purchased 41,914,000.00

44,053,800.00

49,436,100.00

55,410,637.00

61,798,451.00

Add:- Opening Stock of R.M

- 3,226,000.00 3,693,900.00 4,099,095.00 4,593,436.00

Less:-Closing Stock of R.M.

3,226,000.00 3,693,900.00 4,099,095.00 4,593,436.00 5,126,979.00

Cost of Material Consumed 38,688,000.00

43,585,900.00

49,030,905.00

54,916,296.00

61,264,908.00

Total Variable Exp 683,876.00 738,596.00 792,692.00 847,083.00 901,695.00

Total Fixed Exp 648,095.00 680,500.00 714,525.00 750,253.00 787,768.00

Amortization of Exp 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00

Profit Before Int & Dep 1,526,029.00 2,066,029.00 2,421,298.00 2,807,752.00 3,229,593.00

Intt on Term Loan 178,333.33 138,333.34 98,333.33 58,333.33 18,333.34

Intt on W. Capital Loan 234,825.00 293,870.40 329,833.10 367,550.30 408,383.80

Depreciation 269,750.00 234,340.00 203,740.00 177,260.00 154,360.00

Net Profit (before tax) 843,120.67 1,399,485.26 1,789,391.57 2,204,608.37 2,648,515.86

Tax 260,524.00 432,441.00 552,922.00 681,224.00 818,391.00

Net Profit 582,596.67 967,044.26 1,236,469.57 1,523,384.37 1,830,124.86

7.1.16. Projected Cash Flow Statement Sr. Particulars Y1 Y2 Y3 Y4 Y5

1 Revenue

Sales 41,551,000.00 47,076,025.00 52,964,420.00 59,326,384.00 66,188,964.00

2 Term Loan 2,000,000.00 - - - -

W. Capital Loan 2,348,250.00 590,454.00 359,627.00 377,172.00 408,335.00

3 Equity/ Share capital

942,750.00 - - - -

4 RACP Investment Grant

- - - - -

5 Increase in Current Liabilities

3,492,833.00 178,317.00 448,525.00 497,878.00 532,318.00

Sub Total (A) 50,334,833.00 47,844,796.00 53,772,572.00 60,201,434.00 67,129,617.00

Cash Outflow (Rs.)

1 Capital Expenditure

a Building and Civil Work

985,000.00 - - - -

c Plant and Machinery

1,125,000.00 - - - -

d Land Development & Registration

- - - - -

e Electrification & Misc.

25,000.00

f Pre-operative Exp. 25,000.00 - - - -

2 Operational Expenditure

a Fixed Cost (Excl. Of Interest)

648,095.00 680,500.00 714,525.00 750,253.00 787,768.00

b Variable Cost 683,876.00 738,596.00 792,692.00 847,083.00 901,695.00

c Cost of Material Consumed

38,688,000.00 43,585,900.00 49,030,905.00 54,916,296.00 61,264,908.00

3 Loan Repayment - - - - -

a Interest on WC 234,825.00 293,870.40 329,833.10 367,550.30 408,383.80

b Interest on TL 178,333.33 138,333.34 98,333.33 58,333.33 18,333.34

4 Increase in Current Assets

1,658,833.00 294,189.00 242,133.00 266,793.00 285,174.00

Rajasthan Agricultural Competitiveness Project 56

Increase in Stock 4,965,000.00 671,400.00 685,895.00 733,981.00 791,590.00

5 Tax 260,524.00 432,441.00 552,922.00 681,224.00 818,391.00

6 Differential tax liabilities

Sub Total (B) 49,477,486.33 46,835,229.74 52,447,238.43 58,621,513.63 65,276,243.14

Net Cash Flow (A-B)

857,346.67 1,009,566.26 1,325,333.57 1,579,920.37 1,853,373.86

Opening Cash and Bank

857,346.67 1,866,912.93 3,192,246.50 4,772,166.87

Cumulative Cash Balance

857,346.67 1,866,912.93 3,192,246.50 4,772,166.87 6,625,540.73

7.1.17. Financial Indicators

Indicator Value

Internal Rate of Return 21%

Break Even (Average) 45%

Net Present Value 23.20 Lakhs, Positive above Project Cost

DSCR (Average) 3.20

RoCE (Average) 20%

RoE (Average) 62%

Project Payback Period 3 Years 2 Months

Equity Payback Period 1 Year 5 Month

7.1.18. Conclusion Based on study of technology to be adopted in the project, project economics and high economic viability indicators, it can be concluded that project is techno-economically viable and sustainable.

7.2. Project Profile 2: Small Scale Unit (Economy Model)

7.2.1. Premises of Calculation- Suggested Model

(a) Details of Technical Civil Works/ Building Cost Sr. No Particulars Plan Area-

Sq. Ft. Rate/ sq. ft. Amount

(in Rupees)

1 Factory Constructions 5000 800 4,000,000.00

2 Admin and other Civil Con. 1500 800 1,200,000.00

3

Compound Wall/Chainlink and other minor civil work

200,000.00

Total (in Rupees) 5,400,000.00

(b) Plant & Machinery Breakup

Item Capacity Amount (in Rupees)

Main Plant & Machinery 20 TPD 6,428,000.00

Total INR 6,428,000.00

d. The technology proposed for this segment involves Semi-Automatic 20 TPD Besan Milling unit

which comprises of Magnetic Separators, Pin Mill and Pulverizer, Centrifugal Separator,

support structure, storage tanks and material handling equipments, aspiration system, cabling

and control panels and weighing and bagging machine. The total cost of the complete set of

Main P&M, on basis of some referred quotations of leading suppliers in the segment, is Rs.

64.28 Lakhs. This is inclusive of taxes, transportation, installation and commissioning charges.

Other Assumptions

Rajasthan Agricultural Competitiveness Project 57

Assumpions

1 Working Hours per day 20 hours

2 Plant Capacity /Day 20 TPD

3 No. of Working Days in a year 300

4 Power Requirement 100 KVA

5 Standard Packaging for Main Products & By-Products Besan: 50 Kg Packing Rawa: 100 Kg Packing

6 Insurance Exp Considered on Plant & Mach, Building 0.5% of Capex

7 Inflation assumed annually 5% annually

8 Debtors 15 Days of Sales

9 Stock of Finished Goods 30 Days of Production

10 Stock of Raw Material 1 Months Consumption

7.2.2. Project Cost

Sr. No. Particulars Amount (in Rupees)

1 Land -

2 Building 5,400,000.00

3 Plant & Machinery 6,428,000.00

4 Misc Fixed Assets 150,000.00

5 Preliminary & Pre operative 150,000.00

6 Working Capital Margin 3,611,615.00

Total (in Rupees) 15,739,615.00

The Total Project Cost is Rs. 157.39 Lakhs

It is assumed that upon considering the requirement by way of buildings and other civil works, installation of machinery and provision for stocking material, it is perceived that a suitable plot of land will be leased by entrepreneur.

Miscellaneous fixed assets will include furniture & electrical fixtures, computers, printer, etc which are pegged at Rs. 150,000.

Preliminary expenses are envisaged in terms of legal & administrative expenses, registration, detailed civil engineering drawings, telephone, stationery, etc. Pre-operative expenses include establishment costs, travel, and overheads during construction period including salaries. These are pegged at Rs. 150,000.

The Total Working Capital requirement during the first year of operation is estimated at Rs. 144.46 Lakhs with margin money requirement of Rs. 36.12 Lakhs. Calculations of same are presented in section 7.2.12.

7.2.3. Means of Finance Sr. No. Particulars Amount (in Rupees)

1 Bank Term Loan 10,000,000.00

2 Promoter's Capital 5,739,615.00

Total (in Rupees) 15,739,615.00

It is assumed that Rs. 100.00 Lakhs will be sought as Term Loan from Bank.

7.2.4. Product Schedule Particulars Y1 Y2 Y3 Y4 Y5

Besan Mill Capacity (MT/Day) 20 20 20 20 20

Working Days in Year 300 300 300 300 300

Annual Chickpea Split and Broken Requirement @ 100% CU

6000 6000 6000 6000 6000

Rajasthan Agricultural Competitiveness Project 58

Capacity Utilization 60.00% 65.00% 70.00% 75.00% 80.00%

Total Input of Chickpea Split (MT) 3420 3705 3990 4275 4560

Total Input of Chickpea Broken (MT) 180 195 210 225 240

Total Input (MT) 3600 3900 4200 4500 4800

Output (MT)

Besan Mill

Besan 3420 3705 3990 4275 4560

Rawa 108 117 126 135 144

Normal Loss 72 78 84 90 96

Tonnes processed / day 20 20 20 20 20

No. of days of operation 180 195 210 225 240

7.2.5. Purchase Schedule Particulars Y1 Y2 Y3 Y4 Y5

Chickpea Split (MT) 3705 3729 4014 4298 4584

Purchase Price (in Rs./MT)

50,000.00 52,500.00 55,125.00 57,881.00 60,775.00

Chickpea Split Purchases

185,250,000.00 195,772,500.00 221,271,750.00 248,772,538.00 278,592,600.00

Chickpea Broken (MT)

195 196 212 226 241

Purchase Price (in Rs./MT)

42,000.00 44,100.00 46,305.00 48,620.00 51,051.00

Chickpea Broken Purchases

8,190,000.00 8,643,600.00 9,816,660.00 10,988,120.00 12,303,291.00

Total Purchases (in Rs.)

193,440,000.00 204,416,100.00 231,088,410.00 259,760,658.00 290,895,891.00

Rajasthan Agricultural Competitiveness Project 59

7.2.6. Consumables Packaging Material No. of Bags Cost of Bags

Size Product Rate

/bag

Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5

50 KG

Besan 18 68400 74100 79800 85500 91200 1231200 1333800 1436400 1539000 1641600

100 kg

Rawa 50 1080 1170 1260 1350 1440 54000 58500 63000 67500 72000

Total 69480 75270 81060 86850 92640 1,285,200.00

1,392,300.00

1,499,400.00

1,606,500.00

1,713,600.00

7.2.7. Power Requirement The total requirement of the plant (including admin building power req.) is 100 KVA.

7.2.8. Water Requirement Water 1000 Litres/day

Total 1000 Litres/day

Cost/KL= Rs. 10/KL

i.e.10 Rs. Daily

7.2.9. Manpower Requirement S. No. Particulars No. Monthly Salary Annual Income Dept.

1 Director/Miller 1 35,000.00 420,000.00 Admin

2 Factory Head 1 25,000.00 300,000.00 factory

3 Marketing and Business Development Head 1 25,000.00 300,000.00 Admin

4 Fitters 1 8,000.00 96,000.00 factory

5 Accountant 1 8,000.00 96,000.00 Admin

6 Sales Executives 1 8,000.00 96,000.00 Admin

7 Admin Staff 1 8,000.00 96,000.00 Admin

8 Storekeeper 1 8,000.00 96,000.00 factory

9 Security Staff 2 7,000.00 168,000.00 Admin

Total 10 132,000.00 1,668,000.00

Helpers 6 300/day factory

Total Manpower 16

Rajasthan Agricultural Competitiveness Project 60

7.2.10. Depreciation Schedule Particulars Building Plant & Machinery Misc Fixed assets Total Rs.

Rate of Depreciation 10% 15% 10%

Opening WDV 5,400,000.00 6,428,000.00 150,000.00 11,978,000.00

Total 5,400,000.00 6,428,000.00 150,000.00 11,978,000.00

Dep. For 1st Year 540,000.00 964,200.00 15,000.00 1,519,200.00

W.D.V. as on II Year 4,860,000.00 5,463,800.00 135,000.00 10,458,800.00

Dep. For 2nd Year 486,000.00 819,570.00 13,500.00 1,319,070.00

W.D.V. as on III Year 4,374,000.00 4,644,230.00 121,500.00 9,139,730.00

Dep. For 3rd Year 437,400.00 696,630.00 12,150.00 1,146,180.00

W.D.V. as on IV Year 3,936,600.00 3,947,600.00 109,350.00 7,993,550.00

Dep. For 4th Year 393,660.00 592,140.00 10,940.00 996,740.00

W.D.V. as on V Year 3,542,940.00 3,355,460.00 98,410.00 6,996,810.00

Dep. For 5th Year 354,290.00 503,320.00 9,840.00 867,450.00

W.D.V. as on VI Year 3,188,650.00 2,852,140.00 88,570.00 6,129,360.00

7.2.11. TL Repayment Schedule Loan Amount 10,000,000.00

Rate 10.00% In Rs.

Monthly Loan amount Monthly Repayment' Interest Total Instl. Closing Bal

1 10,000,000.00 166,666.67 81,944.44 248,611.11 9,833,333.33

2 9,833,333.33 166,666.67 80,555.56 247,222.23 9,666,666.67

3 9,666,666.67 166,666.67 79,166.67 245,833.34 9,500,000.00

4 9,500,000.00 166,666.67 77,777.78 244,444.45 9,333,333.33

5 9,333,333.33 166,666.67 76,388.89 243,055.56 9,166,666.67

6 9,166,666.67 166,666.67 75,000.00 241,666.67 9,000,000.00

7 9,000,000.00 166,666.67 73,611.11 240,277.78 8,833,333.33

8 8,833,333.33 166,666.67 72,222.22 238,888.89 8,666,666.67

9 8,666,666.67 166,666.67 70,833.33 237,500.00 8,500,000.00

10 8,500,000.00 166,666.67 69,444.44 236,111.11 8,333,333.33

11 8,333,333.33 166,666.67 68,055.56 234,722.23 8,166,666.67

12 8,166,666.67 166,666.67 66,666.67 233,333.34 8,000,000.00

13 8,000,000.00 166,666.67 65,277.78 231,944.45 7,833,333.33

14 7,833,333.33 166,666.67 63,888.89 230,555.56 7,666,666.67

15 7,666,666.67 166,666.67 62,500.00 229,166.67 7,500,000.00

16 7,500,000.00 166,666.67 61,111.11 227,777.78 7,333,333.33

17 7,333,333.33 166,666.67 59,722.22 226,388.89 7,166,666.67

18 7,166,666.67 166,666.67 58,333.33 225,000.00 7,000,000.00

19 7,000,000.00 166,666.67 56,944.44 223,611.11 6,833,333.33

20 6,833,333.33 166,666.67 55,555.56 222,222.23 6,666,666.67

21 6,666,666.67 166,666.67 54,166.67 220,833.34 6,500,000.00

22 6,500,000.00 166,666.67 52,777.78 219,444.45 6,333,333.33

23 6,333,333.33 166,666.67 51,388.89 218,055.56 6,166,666.67

24 6,166,666.67 166,666.67 50,000.00 216,666.67 6,000,000.00

25 6,000,000.00 166,666.67 48,611.11 215,277.78 5,833,333.33

26 5,833,333.33 166,666.67 47,222.22 213,888.89 5,666,666.67

27 5,666,666.67 166,666.67 45,833.33 212,500.00 5,500,000.00

Rajasthan Agricultural Competitiveness Project 61

28 5,500,000.00 166,666.67 44,444.44 211,111.11 5,333,333.33

29 5,333,333.33 166,666.67 43,055.56 209,722.23 5,166,666.67

30 5,166,666.67 166,666.67 41,666.67 208,333.34 5,000,000.00

31 5,000,000.00 166,666.67 40,277.78 206,944.45 4,833,333.33

32 4,833,333.33 166,666.67 38,888.89 205,555.56 4,666,666.67

33 4,666,666.67 166,666.67 37,500.00 204,166.67 4,500,000.00

34 4,500,000.00 166,666.67 36,111.11 202,777.78 4,333,333.33

35 4,333,333.33 166,666.67 34,722.22 201,388.89 4,166,666.67

36 4,166,666.67 166,666.67 33,333.33 200,000.00 4,000,000.00

37 4,000,000.00 166,666.67 31,944.44 198,611.11 3,833,333.33

38 3,833,333.33 166,666.67 30,555.56 197,222.23 3,666,666.67

39 3,666,666.67 166,666.67 29,166.67 195,833.34 3,500,000.00

40 3,500,000.00 166,666.67 27,777.78 194,444.45 3,333,333.33

41 3,333,333.33 166,666.67 26,388.89 193,055.56 3,166,666.67

42 3,166,666.67 166,666.67 25,000.00 191,666.67 3,000,000.00

43 3,000,000.00 166,666.67 23,611.11 190,277.78 2,833,333.33

44 2,833,333.33 166,666.67 22,222.22 188,888.89 2,666,666.67

45 2,666,666.67 166,666.67 20,833.33 187,500.00 2,500,000.00

46 2,500,000.00 166,666.67 19,444.44 186,111.11 2,333,333.33

47 2,333,333.33 166,666.67 18,055.56 184,722.23 2,166,666.67

48 2,166,666.67 166,666.67 16,666.67 183,333.34 2,000,000.00

49 2,000,000.00 166,666.67 15,277.78 181,944.45 1,833,333.33

50 1,833,333.33 166,666.67 13,888.89 180,555.56 1,666,666.67

51 1,666,666.67 166,666.67 12,500.00 179,166.67 1,500,000.00

52 1,500,000.00 166,666.67 11,111.11 177,777.78 1,333,333.33

53 1,333,333.33 166,666.67 9,722.22 176,388.89 1,166,666.67

54 1,166,666.67 166,666.67 8,333.33 175,000.00 1,000,000.00

55 1,000,000.00 166,666.67 6,944.44 173,611.11 833,333.33

56 833,333.33 166,666.67 5,555.56 172,222.23 666,666.67

57 666,666.67 166,666.67 4,166.67 170,833.34 500,000.00

58 500,000.00 166,666.67 2,777.78 169,444.45 333,333.33

59 333,333.33 166,666.67 1,388.89 168,055.56 166,666.67

60 166,666.67 166,666.67 - 166,666.67 0.00

TOTAL - 4,833,333.33 1,812,500.00 6,645,833.33 -

7.2.12. Projected Working Capital Requirement Particulars Y1 Y2 Y3 Y4 Y5

Debtors 7,657,458.00 9,064,191.00 10,249,156.00 11,531,624.00 12,918,592.00

Stock of F.G 8,029,000.00 9,071,475.00 10,259,354.00 11,564,640.00 12,952,322.00

Stock of R.M 14,880,000.00 16,928,100.00 19,190,115.00 21,529,416.00 24,115,520.00

Less Creditor 16,120,000.00 17,034,675.00 19,257,368.00 21,646,722.00 24,241,324.00

Total Working Cap Required 14,446,458.00 18,029,091.00 20,441,257.00 22,978,958.00 25,745,110.00

W.C Margin 3,611,615.00 4,507,273.00 5,110,314.00 5,744,740.00 6,436,278.00

W.C Loan 10,834,843.00 13,521,818.00 15,330,943.00 17,234,218.00 19,308,832.00

7.2.13. Sales Schedule

Particulars Y1 Y2 Y3 Y4 Y5

Besan (MT) 3277 3694 3978 4263 4548

Sale Price (in Rs. Per MT)

55500 58275 61189 64248 67460

Besan Sales 181,873,500.00 215,267,850.00 243,409,842.00 273,889,224.00 306,808,080.00

Rajasthan Agricultural Competitiveness Project 62

Rawa (MT) 103 117 126 134 144

Sale Price (in Rs. Per MT)

18500 19425 20396 21416 22487

Rawa Sales 1,905,500.00 2,272,725.00 2,569,896.00 2,869,744.00 3,238,128.00

Total Sales 183,779,000.00 217,540,575.00 245,979,738.00 276,758,968.00 310,046,208.00

7.2.14. Projected Balance Sheet

Particulars Y1 Y2 Y3 Y4 Y5

(A) LIABILITIE

S

Partner's Capital 5,739,615.00 5,739,615.00 5,739,615.00 5,739,615.00 5,739,615.00

Add: Addition During the Year

- - - - -

Total Capital 5,739,615.00 5,739,615.00 5,739,615.00 5,739,615.00 5,739,615.00

Reserves & Surplus

RACP Grant - - - - -

Profit & Loss

Opening Balance

- 3,094,789.03 8,067,203.56 14,377,860.60 22,119,660.13

Add: Profit after tax

3,094,789.03 4,972,414.53 6,310,657.04 7,741,799.53 9,265,259.13

Total

3,094,789.03 8,067,203.56 14,377,860.60 22,119,660.13 31,384,919.26

Secured Loan From Bank

10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00

W. Capital Loan

10,834,843.00 13,521,818.00 15,330,943.00 17,234,218.00 19,308,832.00

Current Liability

16,120,000.00 17,034,675.00 19,257,368.00 21,646,722.00 24,241,324.00

Total ( A ) 45,789,247.03 54,363,311.56 64,705,786.60 76,740,215.13 90,674,690.26

(B) ASSETS

Fixed Assets

Gross Block 11,978,000.00 10,458,800.00 9,139,730.00 7,993,550.00 6,996,810.00

Less : Depreciation

1,519,200.00 1,319,070.00 1,146,180.00 996,740.00 867,450.00

Net Block 10,458,800.00 9,139,730.00 7,993,550.00 6,996,810.00 6,129,360.00

Misc Fixed Assets

120,000.00 90,000.00 60,000.00 30,000.00 -

Current Assets

Sundry Debtor 7,657,458.00 9,064,191.00 10,249,156.00 11,531,624.00 12,918,592.00

7,657,458.00 9,064,191.00 10,249,156.00 11,531,624.00 12,918,592.00

Closing Stock

Closing Stock FG

8,029,000.00 9,071,475.00 10,259,354.00 11,564,640.00 12,952,322.00

Closing Stock RM

14,880,000.00 16,928,100.00 19,190,115.00 21,529,416.00 24,115,520.00

22,909,000.00 25,999,575.00 29,449,469.00 33,094,056.00 37,067,842.00

Rajasthan Agricultural Competitiveness Project 63

Cash & Bank Balance

4,643,989.03 10,069,815.56 16,953,611.60 25,087,725.13 34,558,896.26

(Including Cash Credit Limit)

Total ( B ) 45,789,247.03 54,363,311.56 64,705,786.60 76,740,215.13 90,674,690.26

7.2.15. Projected Profit and Loss Statement Particulars Y1 Y2 Y3 Y4 Y5

Total Sales 183,779,000.00 217,540,575.00 245,979,738.00 276,758,968.00 310,046,208.00

Less:- Opening Stock of F.G.

- 8,029,000.00 9,071,475.00 10,259,354.00 11,564,640.00

Add:-Closing Stock of F. G.

8,029,000.00 9,071,475.00 10,259,354.00 11,564,640.00 12,952,322.00

Cost of Finish Goods

191,808,000.00 218,583,050.00 247,167,617.00 278,064,254.00 311,433,890.00

Raw Material Purchased

193,440,000.00 204,416,100.00 231,088,410.00 259,760,658.00 290,895,891.00

Add:- Opening Stock of R.M

- 14,880,000.00 16,928,100.00 19,190,115.00 21,529,416.00

Less:-Closing Stock of R.M.

14,880,000.00 16,928,100.00 19,190,115.00 21,529,416.00 24,115,520.00

Cost of Material Consumed

178,560,000.00 202,368,000.00 228,826,395.00 257,421,357.00 288,309,787.00

Total Variable Exp

3,015,899.00 3,285,671.00 3,550,120.00 3,816,909.00 4,086,206.00

Total Fixed Exp

2,229,040.00 2,340,492.00 2,457,517.00 2,580,398.00 2,709,418.00

Amortization of Exp

30,000.00 30,000.00 30,000.00 30,000.00 30,000.00

Profit Before Int & Dep

7,973,061.00 10,558,887.00 12,303,585.00 14,215,590.00 16,298,479.00

Intt on Term Loan

891,666.67 691,666.67 491,666.66 291,666.67 91,666.67

Intt on W. Capital Loan

1,083,484.30 1,352,181.80 1,533,094.30 1,723,421.80 1,930,883.20

Depreciation 1,519,200.00 1,319,070.00 1,146,180.00 996,740.00 867,450.00

Net Profit (before tax)

4,478,710.03 7,195,968.53 9,132,644.04 11,203,761.53 13,408,479.13

Tax 1,383,921.00 2,223,554.00 2,821,987.00 3,461,962.00 4,143,220.00

Net Profit 3,094,789.03 4,972,414.53 6,310,657.04 7,741,799.53 9,265,259.13

7.2.16. Projected Cash Flow Statement Sr. Particulars Y1 Y2 Y3 Y4 Y5

1 Revenue

Sales 191,808,000.00 218,583,050.00 247,167,617.00 278,064,254.00 311,433,890.00

2 Term Loan 10,000,000.00 - - - -

W. Capital Loan 10,834,843.00 2,686,975.00 1,809,125.00 1,903,275.00 2,074,614.00

3 Equity/ Share 5,739,615.00 - - - -

Rajasthan Agricultural Competitiveness Project 64

capital

4 RACP Investment Grant

- - - - -

5 Increase in Current Liabilities

16,120,000.00 914,675.00 2,222,693.00 2,389,354.00 2,594,602.00

Sub Total (A) 234,502,458.00 222,184,700.00 251,199,435.00 282,356,883.00 316,103,106.00

Cash Outflow (Rs.)

1 Capital Expenditure

a Building and Civil Work

5,400,000.00 - - - -

c Plant and Machinery

6,428,000.00 - - - -

d Land Development & Registration

- - - - -

e Electrification & Misc

150,000.00

f Pre Operative Exp 150,000.00 - - - -

2 Operational Expenditure

a Fixed Cost (Excl. Of Interest)

2,229,040.00 2,340,492.00 2,457,517.00 2,580,398.00 2,709,418.00

b Variable Cost 3,015,899.00 3,285,671.00 3,550,120.00 3,816,909.00 4,086,206.00

c Cost of Material Consumed

178,560,000.00 202,368,000.00 228,826,395.00 257,421,357.00 288,309,787.00

3 Loan Repayment - - - - -

a Interest on WC 1,083,484.30 1,352,181.80 1,533,094.30 1,723,421.80 1,930,883.20

b Interest on TL 891,666.67 691,666.67 491,666.66 291,666.67 91,666.67

4 Increase in Current Assets

7,657,458.00 1,406,733.00 1,184,965.00 1,282,468.00 1,386,968.00

Increase in Stock 22,909,000.00 3,090,575.00 3,449,894.00 3,644,587.00 3,973,786.00

5 Tax 1,383,921.00 2,223,554.00 2,821,987.00 3,461,962.00 4,143,220.00

6 Differential tax liabilities

Sub Total (B) 229,858,468.97 216,758,873.47 244,315,638.96 274,222,769.47 306,631,934.87

Net Cash Flow (A-B)

4,643,989.03 5,425,826.53 6,883,796.04 8,134,113.53 9,471,171.13

Opening Cash and Bank

4,643,989.03 10,069,815.56 16,953,611.60 25,087,725.13

Cumulative Cash Balance

4,643,989.03 10,069,815.56 16,953,611.60 25,087,725.13 34,558,896.26

7.2.17. Financial Indicators

Indicator Value

Internal Rate of Return 20%

Break Even (Average) 40%

Net Present Value 116.31 Lakhs, Positive above Project Cost

DSCR (Average) 3.30

RoCE (Average) 20%

RoE (Average) 54%

Rajasthan Agricultural Competitiveness Project 65

Project Payback Period 3 Years 3 Months

Equity Payback Period 1 Year 7 Month

7.2.18. Conclusion Based on study of technology to be adopted in the project, project economics and high economic viability indicators, it can be concluded that the project is techno-economically viable and sustainable.

7.3. Project Profile 3: Small Scale Unit (Fully Automatic Plant)

7.3.1. Premises of Calculation- Suggested Model (a) Details of Technical Civil Works/ Building Cost

Sr. No Particulars Plan Area- Sq. Ft.

Rate/ sq. ft. Amount (in Rupees)

1 Factory Civil and Shed Works 8000 800 6,400,000.00

2 Admin Office, Labor Quarters, Spares and stocks Storage Room and other Civil Con.

5000 800 4,000,000.00

3 Compound Wall, Weighbridge pit and other civil works

Lump sum 800,000.00

Total (in Rupees) 11,200,000.00

(b) Plant & Machinery Breakup

Sr. No. Item Capacity Amount (in Rupees)

1 Main Plant & Machinery 50 TPD Besan Plant 26,439,000.00

2 Utilities (Weighbridge, etc) 100 MT, other-various 2,500,000.00

Total INR 28,939,000.00

The main plant and machinery is complete set for Fully Automatic 50 TPD Besan Mill

Plant. The main plant and machinery include magnetic separators, Hammer Mill and

Pulverizer, High Pressure Filters, complete support structure, storage tanks and material

handling equipments, aspiration system, cabling and control panels, weighing and bagging

machine and packing machine, pneumatics and automation system and lab equipments.

The total cost of the complete set of Main P&M, on basis of some referred quotations of

leading suppliers in the segment, is Rs. 264.39 Lakhs. The cost of Utilities (Weighbridge,

etc), on basis of some referred quotations of leading suppliers, is Rs. 25.00 Lakhs. This is

inclusive of taxes, transportation, installation and commissioning charges.

(c) Other Assumptions

Assumptions

1 Working Hours per day 20 hours

2 Plant Capacity /Day 50 TPD Besan Plant

3 No. of Working Days in a year 300

4 Power Requirement 150 KVA

5 Standard Packaging for Main Products & By-Products Main Products: 1 kg, 2 kg, 50 Kg Packing By-Products: 100 Kg Packing

6 Insurance Exp Considered on Plant & Mach, Building 0.5% of Capex

Rajasthan Agricultural Competitiveness Project 66

7 Inflation assumed annually 5% annually

8 Debtors 15 Days of Sales

9 Stock of Finished Goods 30 Days of Production

10 Stock of Raw Material 1 Months Consumption

7.3.2. Project Cost

Sr. No. Particulars Amount (in Rupees)

1 Land -

2 Building 11,200,000.00

3 Plant & Machinery 28,939,000.00

4 Misc Fixed Assets 300,000.00

4 Preliminary & Pre operative 300,000.00

5 Working Capital Margin 11,390,901.00

Total (in Rupees) 52,129,901.00

The Total Project Cost is Rs. 521.30 Lakhs

It is assumed that upon considering the requirement by way of buildings and other civil works, installation of machinery and provision for stocking material, it is perceived that a suitable plot of land will be leased by entrepreneur.

Miscellaneous fixed assets will include furniture & electrical fixtures, Computers, Printer, CCD cameras, etc which are pegged at Rs. 3 Lakhs.

Preliminary expenses are envisaged in terms of legal & administrative expenses, registration, detailed civil engineering drawings, telephone, stationery, etc. Pre-operative expenses include establishment costs, travel, and overheads during construction period including salaries. These are pegged at Rs. 3 Lakhs.

The Total Working Capital requirement during the first year of operation is estimated at Rs. 455.64 Lakhs with margin money requirement of Rs. 113.91 Lakhs. Calculations of same are presented in section 7.3.12.

7.3.3. Means of Finance

Sr. No. Particulars Amount (in Rupees)

1 Bank Term Loan 40,000,000.00

2 Promoter's Capital 12,129,901.00

Total (in Rupees) 52,129,901.00

It is assumed that Rs. 400 Lakhs will be sought as Term Loan from Bank.

7.3.4. Product Schedule Particulars Y1 Y2 Y3 Y4 Y5

Besan Mill Capacity (MT/Day) 50 50 50 50 50

Working Days in Year 300 300 300 300 300

Annual Chickpea Requirement (MT) @ 100% CU 15000 15000 15000 15000 15000

Capacity Utilization 75.00% 78.00% 80.00% 85.00% 85.00%

Total Input of Chickpea Split (MT) 10688 11115 11400 12113 12113

Total Input of Chickpea broken (MT) 563 585 600 638 638

Total Input 11251 11700 12000 12751 12751

Output (MT)

Besan Mill

Besan 10801 11232 11520 12241 12241

Rawa 338 351 360 383 383

Normal loss 113 117 120 128 128

Tonnes processed / day 50 50 50 50 50

Rajasthan Agricultural Competitiveness Project 67

No. of days of operation 214 222 228 242 242

Rajasthan Agricultural Competitiveness Project 68

7.3.5. Purchase Schedule Particulars Y1 Y2 Y3 Y4 Y5

Chickpea Split (MT) 11579 11150 11424 12172 12113

Purchase Price (in Rs./MT) 50000 52500 55125 57881 60775

Chickpea Split Purchases (in Rs.) 578,950,000.00 585,375,000.00 629,748,000.00 704,527,532.00 736,167,575.00

Chickpea Broken (MT) 610 587 601 641 638

Purchase Price (in Rs./MT) 42000 44100 46305 48620 51051

Chickpea Broken Purchases (in Rs.) 25,620,000.00 25,886,700.00 27,829,305.00 31,165,420.00 32,570,538.00

Total Purchases (in Rs.) 604,570,000.00 611,261,700.00 657,577,305.00 735,692,952.00 768,738,113.00

7.3.6. Consumables

Packaging Material

No. of Bags Cost of Bags

Size Prod

uct

Rate

/bag

Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5

1 kg Besan 2.25 2700250 2808000 2880000 3060250 3060250 6075562.5 6318000 6480000 6885562.5 6885562.5

2 kg Besan 3 1350125 1404000 1440000 1530125 1530125 4050375 4212000 4320000 4590375 4590375

50 kg Besan 18 108010 112320 115200 122410 122410 1944180 2021760 2073600 2203380 2203380

100 kg

Rawa 50 3380 3510 3600 3830 3830 169000 175500 180000 191500 191500

Total 4161765 4327830 4438800 4716615 4716615 12,239,117.50

12,727,260.00

13,053,600.00

13,870,817.50

13,870,817.50

7.3.7. Power Requirement The total requirement of the plant (including admin building power req.) is 150 kva.

7.3.8. Water Requirement Human Consumption

2000 Litres/day

Total Consumption 2000 Litres/day

Cost/Kl= Rs. 10/Kl i.e. Rs. 20 Rs. Daily

Rajasthan Agricultural Competitiveness Project 69

7.3.9. Manpower Requirement S. No. Particulars No. Monthly Salary Annual Income Dept.

1 Director/Miller 1 50,000.00 600,000.00 Admin

2 Factory Head 1 35,000.00 420,000.00 factory

3 Accounts Head 1 35,000.00 420,000.00 Admin

4 Marketing and Business Development Head 1 35,000.00 420,000.00 Admin

5 Product and Quality Assurance Manager 1 25,000.00 300,000.00 factory

6 Plant Operators 1 20,000.00 240,000.00 factory

7 Fitters 1 8,000.00 96,000.00 factory

8 Accountant 1 8,000.00 96,000.00 Admin

9 Sales Executives 2 12,000.00 288,000.00 Admin

10 Admin Staff 2 6,000.00 144,000.00 Admin

11 Storekeeper 2 8,000.00 192,000.00 factory

12 Security Staff 2 8,000.00 192,000.00 Admin

Total 16 250,000.00 3,408,000.00

Helpers 12 300/day factory

Total Manpower 28

7.3.10. Depreciation Schedule Particulars Building Plant & Machinery Misc Fixed assets Total Rs.

Rate of Depreciation 10% 15% 10%

Opening WDV 11,200,000.00 28,939,000.00 300,000.00 40,439,000.00

Total 11,200,000.00 28,939,000.00 300,000.00 40,439,000.00

Dep. For 1st Year 1,120,000.00 4,340,850.00 30,000.00 5,490,850.00

W.D.V. as on II Year 10,080,000.00 24,598,150.00 270,000.00 34,948,150.00

Dep. For 2st Year 1,008,000.00 3,689,720.00 27,000.00 4,724,720.00

W.D.V. as on III Year 9,072,000.00 20,908,430.00 243,000.00 30,223,430.00

Dep. For 3rd Year 907,200.00 3,136,260.00 24,300.00 4,067,760.00

W.D.V. as on IV Year 8,164,800.00 17,772,170.00 218,700.00 26,155,670.00

Dep. For 4th Year 816,480.00 2,665,830.00 21,870.00 3,504,180.00

W.D.V. as on V Year 7,348,320.00 15,106,340.00 196,830.00 22,651,490.00

Dep. For 5th Year 734,830.00 2,265,950.00 19,680.00 3,020,460.00

W.D.V. as on VI Year 6,613,490.00 12,840,390.00 177,150.00 19,631,030.00

7.3.11. TL Repayment Schedule Loan Amount 40,000,000.00

Rate 10.00% In Rs.

Monthly Loan amount Monthly Repayment' Interest Total Instl. Closing Bal

1 40,000,000.00 666,666.67 327,777.78 994,444.45 39,333,333.33

2 39,333,333.33 666,666.67 322,222.22 988,888.89 38,666,666.67

3 38,666,666.67 666,666.67 316,666.67 983,333.34 38,000,000.00

4 38,000,000.00 666,666.67 311,111.11 977,777.78 37,333,333.33

5 37,333,333.33 666,666.67 305,555.56 972,222.23 36,666,666.67

6 36,666,666.67 666,666.67 300,000.00 966,666.67 36,000,000.00

7 36,000,000.00 666,666.67 294,444.44 961,111.11 35,333,333.33

8 35,333,333.33 666,666.67 288,888.89 955,555.56 34,666,666.67

Rajasthan Agricultural Competitiveness Project 70

9 34,666,666.67 666,666.67 283,333.33 950,000.00 34,000,000.00

10 34,000,000.00 666,666.67 277,777.78 944,444.45 33,333,333.33

11 33,333,333.33 666,666.67 272,222.22 938,888.89 32,666,666.67

12 32,666,666.67 666,666.67 266,666.67 933,333.34 32,000,000.00

13 32,000,000.00 666,666.67 261,111.11 927,777.78 31,333,333.33

14 31,333,333.33 666,666.67 255,555.56 922,222.23 30,666,666.67

15 30,666,666.67 666,666.67 250,000.00 916,666.67 30,000,000.00

16 30,000,000.00 666,666.67 244,444.44 911,111.11 29,333,333.33

17 29,333,333.33 666,666.67 238,888.89 905,555.56 28,666,666.67

18 28,666,666.67 666,666.67 233,333.33 900,000.00 28,000,000.00

19 28,000,000.00 666,666.67 227,777.78 894,444.45 27,333,333.33

20 27,333,333.33 666,666.67 222,222.22 888,888.89 26,666,666.67

21 26,666,666.67 666,666.67 216,666.67 883,333.34 26,000,000.00

22 26,000,000.00 666,666.67 211,111.11 877,777.78 25,333,333.33

23 25,333,333.33 666,666.67 205,555.56 872,222.23 24,666,666.67

24 24,666,666.67 666,666.67 200,000.00 866,666.67 24,000,000.00

25 24,000,000.00 666,666.67 194,444.44 861,111.11 23,333,333.33

26 23,333,333.33 666,666.67 188,888.89 855,555.56 22,666,666.67

27 22,666,666.67 666,666.67 183,333.33 850,000.00 22,000,000.00

28 22,000,000.00 666,666.67 177,777.78 844,444.45 21,333,333.33

29 21,333,333.33 666,666.67 172,222.22 838,888.89 20,666,666.67

30 20,666,666.67 666,666.67 166,666.67 833,333.34 20,000,000.00

31 20,000,000.00 666,666.67 161,111.11 827,777.78 19,333,333.33

32 19,333,333.33 666,666.67 155,555.56 822,222.23 18,666,666.67

33 18,666,666.67 666,666.67 150,000.00 816,666.67 18,000,000.00

34 18,000,000.00 666,666.67 144,444.44 811,111.11 17,333,333.33

35 17,333,333.33 666,666.67 138,888.89 805,555.56 16,666,666.67

36 16,666,666.67 666,666.67 133,333.33 800,000.00 16,000,000.00

37 16,000,000.00 666,666.67 127,777.78 794,444.45 15,333,333.33

38 15,333,333.33 666,666.67 122,222.22 788,888.89 14,666,666.67

39 14,666,666.67 666,666.67 116,666.67 783,333.34 14,000,000.00

40 14,000,000.00 666,666.67 111,111.11 777,777.78 13,333,333.33

41 13,333,333.33 666,666.67 105,555.56 772,222.23 12,666,666.67

42 12,666,666.67 666,666.67 100,000.00 766,666.67 12,000,000.00

43 12,000,000.00 666,666.67 94,444.44 761,111.11 11,333,333.33

44 11,333,333.33 666,666.67 88,888.89 755,555.56 10,666,666.67

45 10,666,666.67 666,666.67 83,333.33 750,000.00 10,000,000.00

46 10,000,000.00 666,666.67 77,777.78 744,444.45 9,333,333.33

47 9,333,333.33 666,666.67 72,222.22 738,888.89 8,666,666.67

48 8,666,666.67 666,666.67 66,666.67 733,333.34 8,000,000.00

49 8,000,000.00 666,666.67 61,111.11 727,777.78 7,333,333.33

50 7,333,333.33 666,666.67 55,555.56 722,222.23 6,666,666.67

51 6,666,666.67 666,666.67 50,000.00 716,666.67 6,000,000.00

52 6,000,000.00 666,666.67 44,444.44 711,111.11 5,333,333.33

53 5,333,333.33 666,666.67 38,888.89 705,555.56 4,666,666.67

54 4,666,666.67 666,666.67 33,333.33 700,000.00 4,000,000.00

55 4,000,000.00 666,666.67 27,777.78 694,444.45 3,333,333.33

56 3,333,333.33 666,666.67 22,222.22 688,888.89 2,666,666.67

57 2,666,666.67 666,666.67 16,666.67 683,333.34 2,000,000.00

58 2,000,000.00 666,666.67 11,111.11 677,777.78 1,333,333.33

59 1,333,333.33 666,666.67 5,555.56 672,222.23 666,666.67

60 666,666.67 666,666.67 - 666,666.67 0.00

TOTAL - 19,333,333.33 7,250,000.00 26,583,333.33 -

Rajasthan Agricultural Competitiveness Project 71

7.3.12. Projected Working Capital Requirement Particulars Y1 Y2 Y3 Y4 Y5

Debtors 24,186,438.00 27,512,275.00 29,646,066.00 33,029,718.00 34,766,266.00

Stock of F.G 25,234,000.00 27,564,075.00 29,676,660.00 33,109,136.00 34,764,392.00

Stock of R.M 46,524,000.00 50,775,900.00 54,684,000.00 60,978,789.00 64,027,678.00

Less Creditor 50,380,833.00 50,938,475.00 54,798,109.00 61,307,746.00 64,061,509.00

Total Working Cap Required 45,563,605.00 54,913,775.00 59,208,617.00 65,809,897.00 69,496,827.00

W.C Margin 11,390,901.00 13,728,444.00 14,802,154.00 16,452,474.00 17,374,207.00

W.C Loan 34,172,704.00 41,185,331.00 44,406,463.00 49,357,423.00 52,122,620.00

7.3.13. Sales Schedule Particulars Y1 Y2 Y3 Y4 Y5

Besan (MT) 10351 11214 11508 12211 12241

Sale Price (in Rs. Per MT)

55500 58275 61189 64248 67460

Besan Sales 574,480,500.00

653,495,850.00

704,163,012.00

784,532,328.00

825,777,860.00

Rawa (MT) 324 350 360 382 383

Sale Price (in Rs. Per MT)

18500 19425 20396 21416 22487

Rawa Sales 5,994,000.00 6,798,750.00 7,342,560.00 8,180,912.00 8,612,521.00

Total Sales 580,474,500.00

660,294,600.00

711,505,572.00

792,713,240.00

834,390,381.00

7.3.14. Projected Balance Sheet

Particulars Y1 Y2 Y3 Y4 Y5

(A) LIABILITIES

Partner's Capital 12,129,901.00 12,129,901.00

12,129,901.00 12,129,901.00 12,129,901.00

Add: Addition During the Year

- - - - -

Total Capital 12,129,901.00 12,129,901.00 12,129,901.00 12,129,901.00 12,129,901.00

Reserves & Surplus

RACP Grant - - - - -

Profit & Loss

Opening Balance - 10,548,110.93

26,597,550.16 45,968,873.20 69,744,134.73

Add: Profit after tax 10,548,110.93 16,049,439.23

19,371,323.04 23,775,261.53 26,780,504.83

Total 10,548,110.93 26,597,550.16

45,968,873.20 69,744,134.73 96,524,639.56

Secured Loan From Bank 40,000,000.00 40,000,000.00

40,000,000.00 40,000,000.00 40,000,000.00

W. Capital Loan 34,172,704.00 41,185,331.00

44,406,463.00 49,357,423.00 52,122,620.00

Current Liability 50,380,833.00 50,938,475.00

54,798,109.00 61,307,746.00 64,061,509.00

Total ( A ) 147,231,548.93

170,851,257.16

197,303,346.20

232,539,204.73

264,838,669.56

(B) ASSETS

Fixed Assets

Rajasthan Agricultural Competitiveness Project 72

Gross Block 40,439,000.00 34,948,150.00

30,223,430.00 26,155,670.00 22,651,490.00

Less : Depreciation 5,490,850.00 4,724,720.00 4,067,760.00 3,504,180.00 3,020,460.00

Net Block 34,948,150.00 30,223,430.00

26,155,670.00 22,651,490.00 19,631,030.00

Misc Fixed Assets 240,000.00 180,000.00 120,000.00 60,000.00 -

Current Assets

Sundry Debtor 24,186,438.00 27,512,275.00

29,646,066.00 33,029,718.00 34,766,266.00

24,186,438.00 27,512,275.00

29,646,066.00 33,029,718.00 34,766,266.00

Closing Stock

Closing Stock FG 25,234,000.00 27,564,075.00

29,676,660.00 33,109,136.00 34,764,392.00

Closing Stock RM 46,524,000.00 50,775,900.00

54,684,000.00 60,978,789.00 64,027,678.00

71,758,000.00 78,339,975.00

84,360,660.00 94,087,925.00 98,792,070.00

Cash & Bank Balance 16,098,960.93 34,595,577.16

57,020,950.20 82,710,071.73 111,649,303.56

(Including Cash Credit Limit)

Total ( B ) 147,231,548.93

170,851,257.16

197,303,346.20

232,539,204.73

264,838,669.56

7.3.15. Projected Profit and Loss Statement

Particulars Y1 Y2 Y3 Y4 Y5

Total Sales 580,474,500.00 660,294,600.00 711,505,572.00 792,713,240.00 834,390,381.00

Less:- Opening Stock of F.G.

- 25,234,000.00 27,564,075.00 29,676,660.00 33,109,136.00

Add:-Closing Stock of F. G.

25,234,000.00 27,564,075.00 29,676,660.00 33,109,136.00 34,764,392.00

Cost of Finish Goods

605,708,500.00 662,624,675.00 713,618,157.00 796,145,716.00 836,045,637.00

Raw Material Purchased

604,570,000.00 611,261,700.00 657,577,305.00 735,692,952.00 768,738,113.00

Add:- Opening Stock of R.M

- 46,524,000.00 50,775,900.00 54,684,000.00 60,978,789.00

Less:-Closing Stock of R.M.

46,524,000.00 50,775,900.00 54,684,000.00 60,978,789.00 64,027,678.00

Cost of Material Consumed

558,046,000.00 607,009,800.00 653,669,205.00 729,398,163.00 765,689,224.00

Total Variable Exp

15,610,954.50 16,254,207.00 16,692,553.00 17,751,974.50 17,772,812.50

Total Fixed Exp

4,251,764.50 4,464,353.00 4,687,573.00 4,921,954.00 5,168,055.00

Amortization of Exp

60,000.00 60,000.00 60,000.00 60,000.00 60,000.00

Profit Before Int & Dep

27,739,781.00 34,836,315.00 38,508,826.00 44,013,624.50 47,355,545.50

Intt on Term 3,566,666.67 2,766,666.67 1,966,666.66 1,166,666.67 366,666.67

Rajasthan Agricultural Competitiveness Project 73

Loan

Intt on W. Capital Loan

3,417,270.40 4,118,533.10 4,440,646.30 4,935,742.30 5,212,262.00

Depreciation 5,490,850.00 4,724,720.00 4,067,760.00 3,504,180.00 3,020,460.00

Net Profit (before tax)

15,264,993.93 23,226,395.23 28,033,753.04 34,407,035.53 38,756,156.83

Tax 4,716,883.00 7,176,956.00 8,662,430.00 10,631,774.00 11,975,652.00

Net Profit 10,548,110.93 16,049,439.23 19,371,323.04 23,775,261.53 26,780,504.83

7.3.16. Projected Cash Flow Statement Sr. Particulars Y1 Y2 Y3 Y4 Y5

1 Revenue

Sales 605,708,500.00 662,624,675.00 713,618,157.00 796,145,716.00 836,045,637.00

2 Term Loan 40,000,000.00 - - - -

W. Capital Loan 34,172,704.00 7,012,627.00 3,221,132.00 4,950,960.00 2,765,197.00

3 Equity/ Share capital

12,129,901.00 - - - -

4 RACP Investment Grant

- - - - -

5 Increase in Current Liabilities

50,380,833.00 557,642.00 3,859,634.00 6,509,637.00 2,753,763.00

Sub Total (A) 742,391,938.00 670,194,944.00 720,698,923.00 807,606,313.00 841,564,597.00

Cash Outflow (Rs.)

1 Capital Expenditure

a Building and Civil Work

11,200,000.00 - - - -

c Plant and Machinery

28,939,000.00 - - - -

d Land Development & Registration

- - - - -

e Electrification & Misc

300,000.00

f Pre Operative Exp 300,000.00 - - - -

2 Operational Expenditure

a Fixed Cost (Excl. Of Interest)

4,251,764.50 4,464,353.00 4,687,573.00 4,921,954.00 5,168,055.00

b Variable Cost 15,610,954.50 16,254,207.00 16,692,553.00 17,751,974.50 17,772,812.50

c Cost of Material Consumed

558,046,000.00 607,009,800.00 653,669,205.00 729,398,163.00 765,689,224.00

3 Loan Repayment - - - - -

a Interest on WC 3,417,270.40 4,118,533.10 4,440,646.30 4,935,742.30 5,212,262.00

b Interest on TL 3,566,666.67 2,766,666.67 1,966,666.66 1,166,666.67 366,666.67

4 Increase in Current Assets

24,186,438.00 3,325,837.00 2,133,791.00 3,383,652.00 1,736,548.00

Increase in Stock 71,758,000.00 6,581,975.00 6,020,685.00 9,727,265.00 4,704,145.00

5 Tax 4,716,883.00 7,176,956.00 8,662,430.00 10,631,774.00 11,975,652.00

6 Differential tax liabilities

Rajasthan Agricultural Competitiveness Project 74

Sub Total (B) 726,292,977.07 651,698,327.77 698,273,549.96 781,917,191.47 812,625,365.17

Net Cash Flow (A-B)

16,098,960.93 18,496,616.23 22,425,373.04 25,689,121.53 28,939,231.83

Opening Cash and Bank

16,098,960.93 34,595,577.16 57,020,950.20 82,710,071.73

Cumulative Cash Balance

16,098,960.93 34,595,577.16 57,020,950.20 82,710,071.73 111,649,303.56

7.3.17. Financial Indicators

Indicator Value

Internal Rate of Return 19%

Break Even (Average) 37%

Net Present Value 345.94 Lakhs, Positive above Project Cost

DSCR (Average) 2.63

RoCE (Average) 20%

RoE (Average) 87%

Project Payback Period 3 Years 4 Months

Equity Payback Period 1 Year 2 Months

7.3.18. Conclusion Based on study of technology to be adopted in the project, project economics and high economic viability indicators, it can be concluded that the project is techno-economically viable and sustainable.

Rajasthan Agricultural Competitiveness Project 75

Chapter 8: Method of technology dissemination and adoption

Method of dissemination of suggested technology and models

RACP-ABPF shall undertake mix of some or several initiatives to disseminate the suggested

technologies and models, which may broadly include:

Workshops for prospective entrepreneurs/groups, existing industry owners and BoDs of FPCs

Facilitate technology benchmarking exposure visits within and outside state for prospective

entrepreneurs/groups, existing industry owners and BoDs of FPCs

Seminars and Workshops in association with Industry Associations, Technical Institutes and

R&D Institutions

Technology Meets and Tie-ups with Technology Suppliers, Technical Institutes and subject

experts

Facilitate through consultancy and business development services

Dissemination of success stories of units facilitated by ABPF through appropriate media

Dissemination through web portals and mobile applications

Scale of adoption in the clusters and state, through ABPF support

The models and business plans suggested in this report are broadly generic in nature, however involve:

technology profile

civil works requirement

raw material sourcing and logistic costs for sourcing raw material

capacity utilization for different scenarios

realistic assessment of investment and working capital needs

possible sources of funding

financial analysis

The suggested models and business plans are for optimal capacities which can be created in accordance

to the scale, investment, technology needs of the entrepreneur. ABPF will further guide entrepreneurs

on statutory clearances needed for operating the business, required licenses, ways of leveraging various

government schemes/subsidies and several other aspects for effective technology adoption. In order to

Rajasthan Agricultural Competitiveness Project 76

increase the scale and potential adoption, ABPF shall pursue some or mix of several initiatives, which

may broadly include:

Investor road shows: ABPF will organize road shows that will comprise of meets aimed at

disseminating information regarding opportunities to invest in the state, targeting potential

investors both within & outside the state.

B2B Meets: ABPF will hold Business to Business Meetings to ensure development of

partnerships amongst entrepreneurs with complimentary offerings.

Establishing Mentor Network: ABPF will also prepare a list of well-established

entrepreneurs/ subject matter experts who could mentor the emerging entrepreneurs- advising

them on technical and commercial aspects of running a business.

Mentor-Mentee Workshops: ABPF will hold a series of workshops wherein the potential

entrepreneurs and their mentors would interact and exchange ideas on establishing, developing

and running new businesses. Based on the interest and seriousness of the entrepreneur, ABPF

will also facilitate one on one discussion with the mentors. ABPF will also invite commercial

banks to these workshops and investor meets, so as to establish a rapport between the

entrepreneur and the banks. By building a good working relationship with the banks over a

period of time, ABPF will be able to recommend viable business projects for accessing

commercial credit from these banks.

Facilitating Access to Finance: ABPF will guide and facilitate entrepreneurs to explore

possible sources of funding including ways of leveraging various government

schemes/subsidies. ABPF will facilitate one on one dedicated meetings between entrepreneurs

and commercial banks in order to facilitate access to finance (both investment as well as

working capital).

Creating a robust Knowledge Base: ABPF will prepare an operational knowledge base that

could be used by an entrepreneur throughout the life cycle of the enterprise. The knowledge

base would comprise of fundamentals of business management including objectives, operations

management, organizational behavior, human resources management, structure of the

organization, products and markets, operations finance including major expenditures, sources

of financing across the stages of the life cycle of the enterprise (from start up to mature

business and expansion). Knowledge base would also cover fundamentals of accounting, sales,

marketing, promotion, branding, distribution, logistics, human resource management etc. ABPF

will also establish a business performance tracking system of the enterprises supported by

ABPF.

Review of Business Plans for funding through RACP: ABPF will review the business plans

and provide its recommendations on applications.

Rajasthan Agricultural Competitiveness Project 77

References

Forging a new future for pulses - By Hakan Bahceci, CEO, Hakan Agr DMCC Dall processing -Time to look beyond borders? - By Dr. Bharat Kulkarni, Director, Stalwart Management Consultancy Services Pulse Fractions: Protein, Fiber, Starch Food Applications – By Tanya Der, Manager of Food Innovation & Marketing, Pulse Canada Perspective on the Global Pulse Sector- By Huseyin Arslan, Executive Chairman, AGT Foods

Factors Influencing The Demand For Chickpea In India: Implications For Marketing And Promotion In The Indian Chickpea Market - By Frank W Agbola, Martin J M Bent, Tim G Kelley and P Parthasarathy Rao Pulse Processing, Functionality and Application- By Heather Maskus, M.Sc. (Food Science), Winnipeg, Manitoba Consumer Trends-Pulses in India - By Agriculture and Agri-Food Canada Latest Technologies in Cleaning, Grading & Handling of all kinds of Seeds, Pulses, Spices, Fruit &Vegetable Produce - By Ajay Tomar, Gautam Bisawas, Aseem Singhania- Osaw Agro Industries Pvt. Ltd., Ambala Cantt, Haryana https://consumeraffairs.nic.in/consumer/WriteReadData/Besan.pdf Besan Mill, Buhler’s latest innovation for producing pulse flour - Commodity India – Comprehensive Commodity Intelligence Optimised Pulses, Grains & Oilseed Processing Solution - By Surojit Basu, Buhler India Pvt. Ltd. Feeding Nine Billion People in a Sustainable Way – The Buhler Magazine/#174/November 2016 On the highway to success - The Buhler Magazine Pulse Processing for End Use Application – By Ashok Sarkar, Senior Advisor, Technology CIGI, Canada Grain Processing Technology – By Cimbria Unigrain

Rajasthan Agricultural Competitiveness Project 78

Guide to investing in agriculture and allied sector- Department of Agriculture, Govt. of Rajasthan Chickpea Value Chain: Food Loss Analysis – Causes and Solutions – By Food and Agricultural Organization of the UN Market Analysis: Consumer-Ready Pulse Products - Saskatchewan Agriculture and Food Pulse Milling Technologies- By Jennifer A. Wood and Linda Malcolmson Post-Harvest Management of Pulses - By Rajiv Ratan Lal Prasoon Verma Pulses Handbook 2015 – By CommodityIndia.com CIGI Pulse Flour Milling and Utilization: Project Glossary of Milling Terminology Top 10 gram producing states in India (http://www.ethicalpost.in/top-10-gram-producing-states-in-india/) http://www.commoditiescontrol.com/eagritrader/common/newsdetail.php?type=SPR&itemid=8204&cid1=,2,&varietyid=,33 http://www.aicrpchickpea.res.in/preface.htm

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