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Business Plan - Rice mill
1. PBR Modern Rice Mill
Introduction
PBR Hi tech Rice mill will process the rice in the town Mannachanallur of Trichy District in
Tamil Nadu in order to reduce the retail price of rice in this outlying area.
The Rice milling is the process that helps in removal of hulls and bran’s from paddy grains to
produce polished rice. Rice is rich in genetic diversity with thousands of varieties grown
throughout the world. Rice has been one of man’s most important foods. Today, this unique
grain helps sustain two-thirds of the world's population. It is life for thousands of millions of
people. It is deeply embedded in the cultural heritage of their societies. About four-fifths of the
world's rice are produced by small-scale farmers and are consumed locally.
Rice milling Process
Goals and objectives
Mission Statement
Empowerment through customer satisfaction thereby providing god quality products at an
affordable price
Vision Statement
To achieve the national dominance in the Rice Industrial sector.
0-18 month goals
This is the startup period where the milling infrastructure will be built. This includes
building of facilities, ordering and installation of a maize mill, installation of electricity
hookups, procuring paddy, and the training of staff on operations and maintenance. Full
operation will start during the 2016 harvesting season.
3 year goals
With positive cash flow in PBR will turn its focus on growth. It will work with other state
for paddy procurement and thus gaining additional raw material during non-seasonal
period In Tamil Nadu.
2. SWOT Analysis
Strength
Rice is a staple food in India and so it always has a large demand.
Business location - Paddy cultivation is very near to our location. SO the raw material
procurement and transportation is very easy and in less cost especially during the harvest
period.
Labor force required is very low. That is about only 5 employees required for the
operations and resource management due to advanced technology.
Weakness
Products or service similar to competitors'
Lack of patent protection
A weak brand name
Opportunities
Rice bank
Increasing population
Development of new technology for fastening the processing of paddy.
Government regulation softening
Threats
New substitute products emerging in the market like basmati, motta etc.
Price competition among the local paddy in comparison to new substitute products
emerging in the market like basmati, motta etc.
Price competition among the local paddy in comparison to paddy from Andhra Pradesh
and Karnataka.
Economic pressure is there because purchase only local paddy is higher risky.
Due to higher plotting of land, production of paddy is decreasing.
Global warming and pollution
Increase in Farming cost
3. How to start?
Startup activity according to the 14 months’ timeline
2017/01 – 2017-03 Administrative bank accounts, permits and
licensing etc..
Continuation on electricity application
Building planning, sourcing of materials
2017/06 Completing the building of facilities
2017/07-2017/11 Start Initial milling installation of machineries
Further training on milling operations.
Training and preparations for maize storage.
2017/12– 2017/1 Completion of Electricity Installation and
machinery installation verification from the
government for licensing and Permits.
2017/2-2017/4 Procurement of Paddy and staring the milling
Operations.
Delivery of product to clients.
Startup Cost:
There are several startup cost due to infrastructure development. These cost are one time
expenditures totally Rs.8,68,00,000 including the land acquired for the infrastructure.
Workforce:
Post start up during operations the mill will require 2 to 6 employees during off and peak seasons
to run at capacity. Operations management will consist of overseeing milling operations, labor,
maintenance, quality control and product delivery. Financial management will consists of
administration and recording the inflow and outflow of cash. Workers will be trained on location
and will be responsible for running the mill.
Business capacity:
Particulars Paddy Requirement
Plant Capacity(TPH) 4
No. of working hours 16
Number of days 300
Annual requirement (in MT) at installed
capacity
19200
5. Suggestions:
Brochure preparation and website launching
Training to unit workers in the field of TQM, ISO 9000, etc.
Interaction of the industry with other rice miller associations for the information
exchange and the fixation of salaries and wages.
There is a need to concentrate on the various marketing management techniques like
branding, trade marking, costing and pricing techniques.
Updating of technology for the automation of operations should be done annually.
Learning from the existing market leaders of the industry is important.