Entrepreneurship Development through APC Concept

1. Dr M S ALAM
Principal Scientist & I/c AICRP on PHET
Deptt. of Processing & Food Engineering
PAU, Ludhiana
AGRO PROCESSING COMPLEXES

2. Why Agro Processing Complex?
Processing of farm produce
locally
Reduced transportation cost of
raw materials
Employment generation in
production catchment
Adulteration free product
Increased farm income
Migration check of unemployed
rural youth to urban areas
Ease of disposal of waste
SECURE INCOME

3. APC CONCEPT
Agro-processing complex is a place where
more than one crops are processed and
have the required facilities for handling,
processing and storage of cereals, pulses,
oilseeds and spices at village level.

4. Factors Favorable for the Development of
APCs at Rural Level
•Availability of Raw Material
(Wheat, paddy, oilseed, cotton, spices, pulses)
•Economic Gain
•Government Policies(subsidy)
•Employment Generation
•Nutritional Security
•Increased Purchasing Power
• Check on Post Harvest Losses

5. Commodity MSP
(RS/qtl)
Processed
Product
Market cost
Approx.
(Rs/qtl)
Profit
(Rs/qtl)
Wheat 1925
(2250)
Flour +
choker
3000 750
Paddy 1815
(2600)
Rice +
Bran +
husk
5000 2400
Mustard 5050
(12625)
Oil + Oil
cake
18000 5375
RAW/ PROCESSED PRODUCT COST PROFIT RATIO

6. Salient Features
These complexes may
comprise of a mini rice
mill, baby oil expeller,
atta chakki (rajasthani),
flour mill, masala grinder
and feed mill. All these
complexes were found
to be economically
viable units, providing
employment to 2-5
persons.

7. PENJA
AGRO PROCESSING COMPLEX
RUBBER
ROLL
SHELLER
POLISHER
ATTA CHAKI
(RAJASTHANI)
BABY OIL EXPELLER
SCOURING
MACHINE
ATTA
CHAKKI
CLEANER
PIT FOR GRAINS
ELEVATORS
Desired space of approx. 150-200 sq.yard

8. Model of Agro Processing Complex

9. Present Cost of Machines Required for APC
Extra Cost of Rs 6, 00,000 (for construction of APC shed along with installation of
machinery)
Crop/
Commodity
Processed Products/
By-products
Components/
machines
Capacity Cost (Rs.)
Paddy Rice/Husk and bran Mini rice mill with two
polishers & elevators
250 kg/hr 3,00,000
Oilseeds Filtered oil/Oil Cake Baby oil expeller with
filter press
100 kg/hr of
oilseed
3,00,000
Wheat Wheat Flour/Bran Atta Chakki (with
Scourer)
700 kg/hr 7,00,000
Wheat Wheat Flour/Bran Atta Chakki (Rajasthani) 150 kg/hr 50,000
Turmeric, Chilli Turmeric and Chilli
powder
Masala Grinder 50 kg/hr 85,000
Pulses Graded pulses Pulse cleaner-cum-
grader
100 kg/hr 65,000
Mixture of by-
products
Cattle feed Cattle feed mill 9 qtls/hr 3,50,000
Electric motor with fitting 20-25 hp 1,50,000
Total cost on machinery 20,00,000

10. PROJECT IDEA
FEASIBILITY STUDY
• Technical
• Commercial Market
• Economical
• Financial
• Social
Preliminary
investment decision
Yes Favorable
No Abandon
ENGINEERING DESIGN/PLANT DESIGN
• Plant Location
• Plant Size/ Capacity
• Product Design/Specification
• Process selection/ design
• Market analysis
• Equipment/ Plant Layout
• Piping and Instrumentation design/selection
• Utilities and services
• Plant building and surroundings
• Cost and benefit analysis
P
L
A
N
N
I
N
G

11. Yes
No Abandon
Final Investment
Decision
Project Report
Capital Acquisition Building Construction
Procurement of Raw material and Equipment
Installation, Commissioning and Start up
Unit in Production/Operation
Marketing
E
X
E
C
U
T
I
O
N
Feasibility Report: Parameter of
economics Viability of project
Capital required, revenue, expenses,
loan, depreciation, bank installments etc

12. STEPS INVOLVED IN
ESTABLISMENT OF APC
Identification and selection of the
agricultural produce to be processed
Site Selection
1 2
Registration
Power Supply
Connection
Bank Loan Subsidy
Agmark
Registration
3
4
5
Selection/Installation of
Machines
6 7 8
9
Marketing and
Sales
Feasibility Report

13. • Cropping pattern of the area
• Raw material available
• Demand/Supply
• Different areas have different
crops. Processes may add or
subtract in the APC according
to native agricultural produce.
Identification and Selection of the Agricultural Produce to be
Processed
1

14.  Plant location
◦ Clean area
◦ No Garbage dump
◦ Good drainage
facility
◦ Should be elevated in
comparison to
surrounding areas
◦ Accessibility via road
 Size
 Capacity
 Design
 Specification
8
' Packag
ing
Area
1
0'
4
'
5
0'
Spice
s
Grindi
ng
Sectio
n 15
sq. ft.
5
'
n
H
S
usk &
Bra
torage
8'
5
'
Oil Expelling
Section
195 sq.
ft.
8
'
C
6
'
Raw
Material
Procurement
4'-
8"
Stor
e
7'-
6"
8
'
Material
Handling &
Transportation
Gate
Rice
Milling
Sectio
n 85
sq. ft.
29'-
3"
1
3'
2
0'
Wheat Milling
Section
524 sq.
ft.
1
5'
4
0'
10'-
9"
Fee
d
Milli
ng
Sect
io
50
sq.
n
ft
.
Recepti
on
ounter
2'
Rolling
Shutter
17'-
7"
8
'
9
"
7'-
6"
1
6'
3'-10"
1'-
10"
11'-
4"
5'
20' 9" 5'-
8" 8' 5'-8" 9"
AGRO PROCESSING COMPLEX UNIT
10'
40'
20'
60'
LAYOUT OF AREA UTILIZATION OF
DIFFERENT PROCESSES
6'-3"
5'-
5"
3'
2'-5"
8'
8'-1"
Rolling Shutter
Stor
e
Racks
Site Selection
2

15. Registration
3
 SSI
◦ Micro enterprise
( annual turnover <5 crores)
◦ Small enterprise
( annual turnover 5-75 crore)
Entrepreneur Memorandum For Setting Up Micro,
Small And Medium Enterprise
 GST(Goods and service tax)
 FSSAI
◦ (Food Standard and Safety Authority ofIndia)

16. 4
Power Supply Connection
20KW/25HP
Documents to be submitted to nearest
Sub Station
◦ Application
◦ AnAffidavit
◦ Security Fee
◦ Advance charges
◦ Meter Security Charges

17. Selection and Installation of Machines
5
 Selection and installation
of machines
3
'
3'-
8"
Ø2'-
2"
Ø
3'
5'-
10"
4'-
10"
P4
5'-
5"
11
"
Hopp
er 1
0'
2'-
10"
P14
2'-
8"
Ø
3'
2'-
6"
Ø
3'
4'
4'
Main
Motor
P18
1'-7"
3'-5"
4
'
6'-
10"
2
2'-
6"
6'-42"'-
6"
LAYOUT OF DETAIL OF DIFFERENT
MACHINES
P21
2
'
2'-
11"
6'-
10"
5'-
3"
P19
6'-
2"
P24
P3
P6 P7
P1 P
P5
P17 3'-6"
P15
P16
P13
P11 2'P
-13
2
"
Pit
2
5'-
3"
Elevato
r 2
Rula 4'-
8"
Raw Material
Pit
3
'
-
8
"
11'-9"
3'-
7"
Pit 1
Elevato
r 1
P23
P22
Double Polisher 2'-
10"
Dehus
ker
Masala
Grinder
Fee
d
Cyclo
ne
Cake
Tank
Oil
Tank
Filter
Press
Oil
Expeller
Filter P
u2m
'-3p" 4'-
11"
2'-11"
P8 P9
P10
44'-3"
Main
Shaft
Chakki 2
Chakki
8'-
1"Sieve
Shaker Atta
Ra
jasthani
Att
a
Chakk
i 1
Rolling
Shutter
4
'
8
'
8
'
Mil
l
P
20
Stor
e
Stora
ge
10'-
9"
3'-
6"
AGRO PROCESSING
COMPLEX UNIT
Count
er
Racks
Stor
e
29'-
3"
9
"
Recepti
on
5
'
4
0'
Husk & Bran
40' 6'
20' 9" 5'-
8" 8' 5'-8" 9"
Packagi
ng
Are
a
Material
Handling &
Transportation
Gate
2'-5"
8'
8'-1"
Rolling Shutter
Raw
Material
Procurement
6
0'

18. Bank Loan
6
• Project report prepared by CA detailing
particulars of
• land
• machines to be installed
• expenses
• working capital
• profit
• pay back period
• SSI registration
• Approval of electricity connection
• Layout of the premises

19. Subsidy
7
 MOFPI
 NABARD
 Others

20. 8
Agmark
Registration
 Application Fee
 Charges for the
filling officer

21. Marketing and Sales
9
 Completely individual/company’s effort.

25. Small scale level improved machinery are available in the
main industrial cities of Punjab i.e Ludhiana, Batala, Rajpura,
Khanna etc

26. Setup of an Agro Processing Complex
Rajasthani Chakki
Atta
Chakki
Mini rice mill

27. Setup of an Agro Processing Complex
OIL EXPELLER

28. Agro Processing Activities at PAU
Extraction of canola oil
Cost of the plant (including
filtration unit) : Rs. 3.00 lakhs
Oilseeds processed in last 6
months: 20 quintals

29. Processing of Canola oilseeds at PAU
 Drying
 Oil Expression
 Sedimentation of
impurities
 Filtration
 Bottling
 Labeling
Recovery of oil: 32-34 %
Oilseed cake : 65kg/q
Oil in cake: 5-8 %
Quantity processed: 50
quintals
PAU varieties: RLC 3/ GSC 7
Sold at the university outlets
Oil expression with screw
press
Filtration of oil
Canola seed
Bottling of oil
Cake Oil

30. Milling of basmati paddy
• Cost of mini rice mill (including grading unit): Rs. 4.00 lakhs
• Capacity of mill: 3.00 quintals of paddy/hour
• Basmati paddy processed in last 6 months: 90 quintals
Agro Processing Activities at PAU

31. Processing of Basmati Paddy
Recovery of rice: 65-67 %
Head Rice recovery: 50%
Quantity processed: 40 quintals
PAU varieties: PAU Pusa Basmati 1121/
1718
Sold at the university outlets
Cleaning Dehusking Polishing
Grading
Packaging

32. Processing of Wheat at PAU
Commodity : Wheat Variety : PBW1 Chapati
Qty processed: 100 quintals Revenue Generated 3.00
lakhs
Packaging
Training session
Outlet for floor
collection
Input hopper Cleaner-cum-
scrubber
Overhead storage
tank
Grinder
Wheat grain in bags

33. Turmeric Processing
• Cost of turmeric processing plant
(Excluding dryer): Rs. 6.5 lakhs
• Raw turmeric processed in last 6
months: 50 quintals
Agro Processing Activities at PAU

34. Processing of Turmeric at PAU
 Washing
 Boiling
 Drying
 Polishing
 Grinding
 Packaging
Recovery: 18-20 % turmeric powder
Turmeric Processed 200 quintals of raw turmeric costing Rs 4.0 Lakhs
Value of processed turmeric 7.0 Lakhs

35. Agro Processing Activities at PAU
Wheat Flour
Cost of the plant (including
filtration unit) : Rs. 5.00 lakhs
Wheat processed in last 2
months: 25 quintals

36. PAU PUBLICATIONS

37.  PAU Variety: SML 668
 Standardization of process
protocols for grading, cleaning,
drying, packaging and labelling
 Clean, nitrogen packed moong
was stored for 6 months and
then sold during summer 2020
and 2021
 Excellent feedback from
consumer wrt packaging,
labelling and quality.
Sun drying
Hot air drying
Temporary storage in
airtight stores
Unloading moong bags
Pilot Plant, Deptt PFE
Nitrogen packaging
Cleaning

38. PRIMARY PROCESSING OF PULSES
Machinery
• Pulse cleaning and grading
machine
• Pulse destoner
• Elevators (3 nos.)
• Vacuum packaging
machine
• Motors etc
Machinery cost
Building cost
10.00 lakh
8.00 lakh
Electric load 20 KW
Capacity 2.0 quintals /hr
Space required 100 sq. yd (covered)
Amount of pulses
processed per year
1000 quintals
Net Profit Rs. 8.00 lakh per year
Employment
generation
3 persons
Machinery manufacturers
M/s Agro Asian Industries
Plot No. 135, Saha HSIIDC,
Industrial Area, Ambala -
133104, Haryana, India
M/s Saluja Plastic Industries
546/1 Gill Road, Ludhiana-
141003
M/s Mahabir Mechanical Works
Near Visavkarma Chowk, Sham
Nagar, Rajpura

39. Economic Analysis of APC
Fixed Cost (25 % of machinery
cost)
2,75,000/-
Variable cost
Labour 3,60,000/-
Electricity 1,20,000/-
Raw material (500 Q Wheat) 10,00,000/-
Miscellaneous 1,50,000
TOTAL COST 19,05,000/-
Income
Atta (485 Q (97% recovery)
@2400/- per Q
11,64,000/-
Byproducts 10Q @ 1500/-per Q 15,000/-
Custom hiring
6500 Q @Rs. 225/- per Q
14,62,500/-
TOTAL INCOME 26,41,500/-
Annual Profit 7,36,500/-
ROI* 67%
Fixed Cost (25 % of
machinery cost)
1,25,000/-
Variable cost
Labour 1,80,000/-
Electricity 96,000/-
Raw material (200 Q) 12,00,000/-
Miscellaneous 50,000
TOTAL COST 16,51,000/-
Income
Oil (60 Q @16000/- per Q) 9,60,000/-
Deoiled cake (140 Q @
2700/- per Q)
3,78,000/-
Custom hiring (1450 Q @ Rs.
450/- per Q)
6,52,000/-
TOTAL INCOME 19,90,000/-
Annual Profit 3,39,000/-
*ROI 68%
Atta Chakki Oil Expeller
* Return on Investment

40. Economic Analysis of APC
Fixed Cost (25 % of machinery cost) 1,25,000/-
Variable cost
Labour 90,000/-
Electricity 1,20,000/-
Miscellaneous 50,000/-
TOTAL COST 3,85,000/-
Income
Paddy milling (1000 Q) @ 300/- per Q 3,00,000/-
Sale of husk (20%) @ 450/-per Q 90,000/-
Sale of bran (4%) @ Rs. 2700/- per Q 1,08,000/-
TOTAL INCOME 4,98,000/-
Annual Profit 1,13,000/-
ROI* 22%
Mini Rice Mill
* Return on Investment

41. Turmeric Processing
Fixed Cost (25% of machinery cost of )
• Washer cum Polisher (1.0 lakh)
• Boiler (4.0 lakh)
• Solar Dryer (2.5 lakh)
• Grinder (1.0 lakh)
• Packaging machine (3.0 lakh, automatic)
2,87,500/-
Variable cost
Labour 1,80,000/-
Electricity 50,000/-
Raw material (1000 Q @ 2500/ - per Q) 25,00,000/-
Miscellaneous 50,000
TOTAL COST 30,67,500/-
Income
Turmeric powder(200 Q @18,000/- per Q) (20% Recovery) 36,00,000/-
TOTAL INCOME 36,00,000/-
Annual Profit 5,32,500/-
*ROI 46%

42. HONEY PROCESSING SYSTEM
Machinery
• Honey heating
cum filtration
unit
• Bottling and
packaging system
Machinery cost 3.00 lakh
Electric load 5 KW
Capacity 50 kg/batch of 2 hrs
Honey processed / day 2 quintals
Cost of processing Rs. 2.0/ kg of honey
(approx.)
Machinery manufacturers
M/s AB Engineers,
Focal Point, Ludhiana

43. S.No Particular Qty.
1. Cane Crusher 10 q/h gear type Operated by 10-15 HP
Motor
01
2. Storage tanks (SS) 03
3. 1.5 Meters diameter MS/SS Pans with 4 handles 02
4. Gutter pan 01
5. Laboratory Equipments
(brix meter, pH meter, temperature sensor)
01
set
6. Cooling tank (Chak) 01
7. Jaggery Tools (Laddle, Strainer, Strainer – Micro mesh
,moulding platform, Scoop, Khurpi, Buckets, sealing
machine etc.
02
set
8. Moulding frame(SS) set 08
9. Moulding frame Platform 02
10. Furnace 01
11. Blender 01
12. Band sealer 01
13. Accessories( pump. Pipe, fittings etc.)
Machinery for 1 ton/hr Jaggery plant

44. Plant running season October to April
(200 days)
Jaggery production in season 100 tons
Manpower Requirements 4-5
Budget requirement Approx 15 lakhs
Jaggery Plant Operation
Space Required 50ft X 30 ft

45. Desired Space: 200-300 sq. Yard
Total Investment on Machinery: Maximum 20.0 lakhs
Monthly Profit: Rs 0.50 to 1.0 Lakhs, depending on the
number of machines and Qty processed
Total APC established: > 300
Employment Generation: 2-5 persons
ECONOMIC VIABILITY

46. A brief plan and its proper execution helps in the
smooth operation for establishing Agro processing units.
An agro processing complex with 2 or more units is
capable of generating an income of Rs. 50,000-100,000
per month along with creating employment for 2-5
people.
AP Based industry seems to be available solution to
pull the farmers out of the current critical situation.
Transforming producer to processor
Offers a stable, economically viable and a socially
respectful opportunity of being an entrepreneur to the
rural population.
GIST