43

Project Proposal For Establishment

of

Functional Infrastructure (Sorting/grading/packing
etc.)


Installed Capacity/annum
:
50 MT
Promoters Share
:
8.00 Lacs
Term Loan
:
8.00 Lacs
Unsecured Loan
:
2.70 Lacs
Name of the Bank
:

Proposed Subsidy
:
6.00 Lacs
Total Project Cost
:
18.70 Lacs



By

M/s -------------------------------------------------------------------------



Submitted to

SHM Govt. of Uttar Pradesh





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FORMAT FOR SUBMISSION OF PROJECT BASED
PROPOSALS (PHM) Functional Infrastructure (Sorting/grading/packing etc.)
Unit BY PRIVATE SECTOR UNDER NHM
1. Name of the Project : M/S
2. Type of Activity : Sorting, grading, packing Preservation of Fruits, vegetables
and other perishable items.
3. Objectives : To provide services of value addition, low cost preservation
and storage of semi-finished Fruits, vegetables and other
perishable items.
4. Location of the Project with
address

a) General Area : Kh. No.:
Vill.:
Teh.:
Distt.:
b) Category of beneficiary :
5. Constitution :


Public Limited
Company/Private Limited
Company/Registered Society
Association/Federation
Producer
Company/Proprietorship Firm
Partnership concern/Individual
person/
Self help group(SHG)

6. Management : Private
7. Brief background of promoter : The Company/firm/association/SHG is promoted by -----------
--------Directors namely Shri ------------- and shri ---------------
. All the directors of the company are agriculturists and have
good experience.
8. Cost of Project : (Rs. In Lacs)
a) Land
(If purchased new
along with
documentary proof)
b) Building
c) Plant & Machinery
d) Contingencies
e) Misc. Fixed Assets
f) Working Capital
margin
g) Pre operative Exp.
h) Other Current Assets &
Securities
:
:
:
:
:
:
:
:
:

:


On Lease



7.50
7.50
0.50
0.50
2.50
-
0.20
-
Total Rs. : 18.70

9. Means of Finance : (Rs. In Lacs)
a) Promoter Share
b) Bank Term Loan
c) Subsidy
d) Quasi Equity
e) Unsecured Loan
:
:
:
:
:
8.00
8.00
6.00
-
2.70
Total Rs. : 18.70

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10. Details of Cost of Plant &
Machinery /equipment
supported by quotation.
: Detailed list of plant & machinery/others utensils is as
follows:
Potato grading line/vegetable grading, washing, waxing line,
minimal processing equipments, Pulper, bhatti, utensils,
knives set, working table, washing tanks, packing machine,
Plastic barrels, plastic crates(200 no.), chemicals, quality
testing equipments, water storage facilities etc.
: Rs. 7.50 lacs(approximately)
11. Details of Building construction
and the cost duly certified.
The details of estimate of working shed,storage godown has
been enclosed as annexure -1
12. Area of operation with special
reference to Districts to be
covered.
Block:
Tehsil:
District :
13. Availability of raw material,
name of the cluster and District
along with the major crops.
Abundant quantity of Mango, amla, papaya, guava,& all
vegetables/spices available in the district as well as in
surrounding area throughout the year. at a glance the total
area in district is (ha) &
Total production in district is 000 MT.
14. Backward Linkage with farmers
with reference to either
providing services or purchase
of raw material.
The promoter also itself engaged in production of
fruits/vegetables as well as having good contacts with the
progressive farmers of their area. The beneficiary has already
its own raw materials for sorting, grading, washing &
minimal processing as per the demand of market. Moreover
number of other farmers willing to provide their raw materials
for same purpose.
15. Forward Linkages- Analysis of
domestic and export markets,
tie up made for sale of Produce
and branding aspect.
Due to the shortages of availability of primary produce as
sorted, graded, washed & minimal processing for ultimate use
of tertiary/final processing unit for converting these produce
to final finished products to be sale in local/domestic/export
market. the processor have to go faraway places for procuring
desired quantity to other states/places at higher rates of semi-
finished produce. Thus there is ample of potential for more
low preservation units in that area.
16. No. of farmers/ orchardist to be
benefited.
Approx. 100 farmers to be benefited.
17. SWOT Analysis. Strength :
There is a abundant availability of raw materials such
as guava, mango,amla,papaya, vegetables,
ornamental plants & spices in proposed area of
district.
The functional infrastructure unit is situated in
fruits/vegetable growing belt and having good
network of growers.
Vast domestic market
Weakness:
Low availability of adequate infrastructural facilities
Lack of adequate quality control & testing methods
Inefficient supply chain due to a large number of
intermediaries
High requirement of working capital.
Seasonality of raw material
Opportunity:
Large crop and material base offering a vast potential
for agro processing activities
Rising income levels and changing consumption
patterns
Favourable demographic profile and changing
lifestyles
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Opening of global markets
Availability of capital subsidy from NHM/DASP to
start a business opportunity in local areas by
converting their raw materials to value added
products as per the local demands of the
consumers/market.
Threat:
Affordability and preferences of fresh food d
High inventory carrying cost
High packaging cost
Natural Calamity.
18. Financial Analysis- IRR, NPW,
cost benefit Ratio, Break even
point, DER, DSER, Projected
balance sheet etc.
The proposed unit has a local market demand oriented basis.
the unit shall be run very successfully by converting fresh
ungraded fruits/vegetables to graded, washed value added
produce which is directly ready to consume products. The
unit has great advantage for more profitability. there is an
ample scope to enhance their profitability within stipulated
course of time.
19. Insurance of the fixed assets. Will Be Submitted Later if desired
20. Certificate from Pollution
Control Department.
No need of NOC from Pollution Control Board so far.
21. Name of the sponsoring bank
along with the details of
Techno-economical appraisal
reports, copy of sanction letter
and Detailed Project Report
(DPR) as submitted to bank.
The proposal has been financed by -------------------------as
well as self appraised by the beneficiary on the basis of local
requirements. The brief detail project report about availability
of raw material, utilities, miscellaneous assets, others
information elaborated as:
DETAILS OF THE PROPOSED PROJECT
Building
The construction /arrangement of building for value addition
shall be of about 1500 sq ft.area for working shed followed by
storage and packing facilities. The anticipated expenditure is
Rs. 7.00 lacs.
Machinery
A detailed list of machinery is already furnished. The
anticipated expenditure is Rs. 7.00 lacs.
Miscellaneous Assets
A provision of Rs. 25,000 would take care of the needs.
Preliminary & Pre-operative Expenses
It is estimated that registration and establishment expenses
and other pre-production expenses like trial runs etc. shall be
Rs.30,000/-.
Working Capital Requirement
Working capital is a pre-requisite for the success of any
project. However, in view of very small scale of activities and
typical nature of customers, the bank would hesitate to
provide post sales facilities. Major item of raw material is
guava, mango, amla, papaya etc which cannot be stored for
more than 2-3 days. Hence, it is assumed that the we will
arrange at our own fund resources as unsecured loans from
relatives/friends or bank if agree of Rs.100,000/- .
Raw Material
The all-important raw materials shall be sound, uniform
texture, and unripe but fully grown bigger sized . Other raw
materials like food grade colours and flavours and citric acid
shall be required in small quantity. Similarly, polythene bags
are also readily available.
Miscellaneous Assets
An amount of Rs. 25,000/- is provided towards working
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tables, weighing scale, exhaust fans and furniture.
Utilities
Power connection of 10 HP is sufficient. Around 1000-1200
ltrs. of water shall be required every day. Furnace oil or
kerosene consumption per day would be around Rs. 150/-.
Thus, annual expenditure on utilities at 100% activity level
would be Rs. 90,000/-.
22. Certificate regarding Non-
availing of subsidy from any
other Central/State Govt.
Departments.
Enclosed as desired by SHM in the affidavit format.
23. Social benefits with special
reference to employment
generation.
a) Direct employment
b) Indirect employment
c) Women/S.T/S.C.
employment



Yes , more than 09
Yes, approximately 30
Yes , approximately 25
24. Details of the sustainability of
the project with special
reference to its capacity to
generate income since only one
time grant is admissible.
Since the proposed unit has a moderate investment and there
is an ample scope to enhance their profitability within
stipulated course of time. The other benefits are as:
Large crop and material base offering a vast potential
for agro processing activities
Rising income levels and changing consumption
patterns
Favorable demographic profile and changing
lifestyles
Opening of global markets
Availability of capital subsidy from NHM to start a
business opportunity in local areas by converting
their raw materials to value added products as per the
local demands of the consumers/market.
25. Implementation schedule Forwarding of Application submission
15 days
Site selection, bank loan formalities and commencement of
minor civil work
30days
Completion of civil work and placement of
orders for machinery 45days
Erection, installation and trial runs 15days
26. Amount of subsidy sought Rs.6.00 Lacs.
Financial assistance in the form of grant is available from the
Ministry of Agriculture, NHM, Govt. of India, towards
expenditure on capital investment for eligible projects.


Recommended & Forwarded Signature of candidate
(By DHO/DDH/PRINCIPAL) Address--------------------------------
Phone & Mobile No.: ---------------


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PERFORMANCE & FINANCIAL
INDICATORS
S.No. Particulars I II III IV V VI VII VIII
1 Paid up Capital
2 Reserve & Surplus
3 (-) Intangible Assets
4 Tangible Net Worth (1+2+3)
5 Term Loans
6 Other Term Liabilities
7 Unsecured Loan
8 Total Term Liabilities (5+6+7)
9 Capital Employed (4+8)
10 Net Block
11
Investment in allied/group
concerns
12 Investment in Others
13 Debtors>6 months
14 Other Non Current Assets
15
Total Non Current Assets
(11+12+13+14)
16 Inventory
17
Debtors Receivable (less than
6 months)
18 Other Current Assets
19
Total Current Assets
(16+17+18)
20
Bank Borrowings/Commercial
Papers
21
Sundry Creditors/ Other
Current Liabilities
22
Total Current Liabilities
(21+22)
23 Net Working capital (19-22)
Operating analysis
Net sales
Profit before tax/loss
Provision for tax
Profit after tax/loss

Depreciation and other non
cash expenses
Cash Accrual
Ratio Analysis
1
Current Ratio (Current Assets/
Current Liabilities)

3
Debt Equity Ratio (Term
Liabilities/Tangible
Net Worth)
4
Leverage ratio (Term + Current
Liabilities/
tangible Networth)

5 Net Profit to Sales (%) 5.35 12.51 22.61 29.02 35.11 39.85 44.39 49.30
6 DSCR 1.42 1.46 1.58 1.69 1.75 1.80 1.85 1.94
7 Average DSCR 1.69
8 Break Even Point 69.08%