PROJECT PROPOSAL FOR

ESTABLISHMENT

OF

ANIMAL CONCENTRATE FEED MAKING UNIT

UNDER
START UP INDIA / KHADI
&
VILLAGE INDUSTRIES BOARD

SUBMITTED BY

Page 1 of 6
 CAPITAL INVESTMENT – FODDER BLOCK MAKING UNIT
(Capacity 01 Tonne/Hour)
Cost (Rs in
S.No Item Quantity Lacs)
1 Inlet Section 1 36000
2 Motor for Inlet elevator 1 10500
3 Transition Piece 1 2000
4 Full Circle Hammer Mill 1 45000
5 Drive Motors to hammer mill and other part 1 28500
6 Bucket Elevator – III 1 46200
7 Molasses service tank 1 18500
8 Molasses pump 1 11500
9 2nd. Elevator For Mixture 1 42200
10 motor for second elevator 1 10500
11 Transition Piece 1 2000
12 Hopper above Mixer 1 28000
13 Mixer machine 1 90000
14 Drive Motors to mixer machine 1 21500
15 Elevator For Pallet Mill 1 42200
16 motor for elevator 1 10500
17 Transition piece 1 3000
18 Bin for Pelletizing Mill 1 24600
19 Screw feeder for pellet mill 1 30000
20 Ac drive fader to pallet mil 1 25000
21 Geared motor for Screw feeder 1 22500
22 Pellet Mill 1 290000
23 Drive Motors to pallet mill 1 96500
24 Pellet Cooler 1 240000
25 Drive Motors to pallet cooler 1 12000
26 Accessories 1 25000
27 Erection charge 60000
TOTAL 1273700

RECURRING COSTs – Ist Year

RAW MATERIALS
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The maximum utilized production capacity of the plant will be around 08 Tonne/Day if
we assume that the Plant will run for 8 hours a day. Further the Plant will for 300 Days
in a year on an average. Thus it will produce about 2400 Tonnes of Concentrate Feed in
per annum. Ingredients required to produce the feed in the Ist Year will be –
Quantity
S.No Ingredient Approx. Cost (Rs in Lacs)
(MT)
1 Maize 240 100000
2 Jowar 120 400000
3 Wheat Bran 192 960000
4 Deoiled Rice Bran 600 900000
5 Molasses 201.6 403200
6 Groundnut Cake 600 4000000
7 Mineral Mixture 36 432000
8 Other Raw Materials 480 1440000
9 Gunny Bags 48.96 391680
TOTAL 2518.56 9026880

LABOUR COST
The expenses on labour component (about 6 skilled and unskilled labour / day) would
be Rs 150 per Tonne of Feed (towards Unskilled Labour @ Rs 200 per labour/day X 6
labours) and Rs 250 per Tonne of Feed (towards Skilled Labour @ Rs 500 per
labour/day X 4 labours).
POWER CHARGES
The cost of power for 2400 Tonnes of Feed would be about 2400000 @ Rs
1000/Tonne.

PACKAGING & TRANSPORTATION CHARGES

The cost of packaging would be about 120000 @ Rs 50 / Tonne and cost of

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transportation would be about 240000 @ Rs 100 / Tonne.
OVERHEADS & Miscl Expenses
The Overheads for 2400 Tonnes of Feed would be about 120000 @ Rs 50/Tonne.
Project Cost for Feed Making Unit

S No Particular Cost (Rs)

1 Capital Investment 1273700

2 Working Capital for 01 Month Towards Labour, 720000

Raw Materials, Power, Packaging & Transportation
and Overheads

TOTAL 1993700

Summary –

1 Total Project Cost (Rs) 1993700

2 Margin money @ 15 % (Rs) 299055

3 Subsidy @ 35% 697795
4 Initial Disbursement (Rs) 1694645
5 Effective Bank Loan 996850
6 Rate of Interest (% p.a.) 12.5
7 Pay Back Period (Yrs) 5

Re-payment of Bank Loan –

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Loan Component Ist yr IInd Yr IIIrd Yr IVth Yr Vth Yr

Repayment of
199370 199370 199370 199370 199370
Principal

Adjustment of
0 0 0 0 697795
Subsidy

Repayment of
124606.25 99685 74763.75 49842.5 24921.25
Interest

TOTAL 323976.25 299055 274133.75 249212.5 922086.25

PROJECTED INCOME – EXPENDITURE STATEMENT

Income Expenditure Projections
SNo Particulars I st Yr II nd Yr III rd Yr IV th Yr V th Yr
PROJECTED COSTS

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 Margin
1 Money 299055
2 Recurring costs
a) Raw Materials 9026880 9026880 9026880 9026880 9026880
Depreciation
on Capital
(@ 10% on
b) Building & Equip) 452050 452050 452050 452050 452050
c) Loan Principle 199370 199370 199370 199370 199370
d) Loan Interest 124606 99685 74764 49843 24921
e) Labour cost 960000 960000 960000 960000 960000
Electricity
f) charges 2400000 2400000 2400000 2400000 2400000
Packaging &
g) Transportation 360000 360000 360000 360000 360000
Overheads &
Miscl 120000 120000 120000 120000 120000
Total recurring
expenses 13642906 13617985 13593064 13568143 13543221
Total costs 13941961 13617985 13593064 13568143 13543221
PROJECTED BENEFITS
a) Sale of Feed 48000000 48000000 48000000 48000000 48000000
Total benefits 48000000 48000000 48000000 48000000 48000000
NET INCOME 34058039 34382015 34406936 34431858 34456779
AVERAGE NET
INCOME / Month 2862260

Assumptions –
 Depreciation on Initial Capital @ 10 % p.a.
 Sale Price of Feed @ Rs 20 per kg
 Margin money / Bank Credit @ 15 % of Project cost
 Interest on Bank Loan @ 12.5 p.a.

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