.

Production Process
The major operations involved in the production of animal feed are: raw materials preparation, primary crushing, assorting and measuring, molasses mixing, fine crushing, pellet making, and packaging. Raw and auxiliary materials are first charged into silos and tanks where they are made ready for further processing. They are then processed by primary crusher. Crushed materials are further separated by means of a sifter, and then stored in the assorting tanks according to the kind of raw materials. In assorting and measuring operation, small amounts of additives are charged into the bins containing different assortments of raw materials. The raw materials stored in the assorting tanks are measured in accordance with the desired proportion. The raw materials are then mixed by means of a mixer. In this process, fatty ingredients are added to the materials in order to raise the nutritional value of the feed. The feed obtained from the mixer is blended with molasses. After the feed is blended with molasses, it is further crushed by means of the second crusher. Sometimes, second crushing is undesirable and can be avoided. Assorted animal feed that is crushed into fine particles is further formed into pellets. The pellets, which are cylindrical type and size, 6mm in diameter and 2cm in length, are then dried. The product is next stored in the product tanks, then weighed and packaged in jute bag.

3.7.2 ENGINEERING 1. Machinery and equipment

Machinery and equipment required by the plant, including the auxiliary equipment are given in Table. The total cost of plant machinery and equipment is estimated at Rs 7.0 million.
MACHINERY AND EQUIPMENT REQUIRED BY CATTLE FEED PRODUCING PLANT Sr. No. 1 Description Tank and silos for raw and auxiliary materials storage Metal screen and shaker Hammer Mill (crusher) Blender Weighing scale (5 tons) Bagging machine Dust collector Product tank Pellet producing machine Tanks for oil cakes and molasses Boiler Other accessories Qty. 1

2 3 4 5 6 7 8 9 10 11 12

1 1 1 1 1 1 1 1 1 1 1

MANPOWER AND TRAINING REQUIREMENTS 3.8.1. MANPOWER REQUIREMENT

The manpower requirement of the plant will be 33 persons, out of which 18 will be engaged in production activities and the remaining 19 will be involved in administrative activities. Table shows the details of manpower requirement of the plant and estimated annual labour cost including fringe benefits. ANNUAL MANPOWER REQUIREMENT AND ESTIMATED LABOUR COST Sr. Description No. of Monthly No. Persons Salary,Rs.
1 2 3 4 Plant Manager Secretary Accountant Personnel officer 1 1 1 1 8,500 6,700 8,700 6,200

5 6 7 8 9 10 11 12 13 14 15 16 Sub-total

Salesperson/purchaser Cashier Clerks General Service officer Store keeper Production supervisor Maintenance Engineer. Technician operators Laborers Cleaner Driver Guard

1 1 2 1 2 1 1 6 6 2 2 4 33

5,200 5000 4000 6200 5,000 7200 9200 5600 4,000 4000 4000 6,200

3.9.TOTAL INITIAL INVESTMENT COST

The total investment cost of the project including working capital is estimated at Rs. 12.77 million, of which 14 per cent will be required in foreign currency.
INITIAL INVESTMENT COST Total Cost Cost Items (000 Rupees) Land lease value 25.0 Building and Civil Work 1,380.0 Plant Machinery and 7,000.0 Equipment Office Furniture and 75.0 Equipment Vehicle 450.0 Pre-production 666.2 Expenditure* Working Capital 3,189.3 12,785.5

Sr. No. 1 2 3 4 5 6 7 Total Investment cost

3.10.PRODUCTION COST
The annual production cost at full operation capacity is estimated at Rupees18.87 million. The material and utility cost accounts for 90.87 per cent, while repair and maintenance take 0.93 per cent of the production cost.
ANNUAL PRODUCTION COST AT FULL CAPACITY ('000) Items Cost %

Raw Material and Inputs Utilities Maintenance and repair Labour direct Factory overheads Administration Costs Total Operating Costs Depreciation Cost of Finance Total Production Cost

16,604.64 538.62 175 174.53 0 116.35 17,609.14 896.9 360.17 18,866.21

88.01 2.85 0.93 0.93 0.00 0.62 93.34 4.75 1.91 100