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1. CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)
FACULTY OF MANAGEMENT STUDIES (FMS)
INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (IIIM)
MBA PROGRAMME (BATCH: 2021-23),
SEMESTER-III
ENTREPRENEURSHIP AND MSMES (EMSMES) (PRACTICAL)
Business Idea (Rice Mill)
Patel Shivang
(21MBA091)
Semester 3 –
MBA- IIIM-CHARUSAT

2. Introduction of a Business Idea
Rice is highly consumable food in India; India is having the largest
market for packaged rice segment.
The raw material from the rice mill plant is rice bran which having
great demand as raw material for solvent extraction plant.
India is leading country for rice production and export, basmati rice
is the type of the rice which is having a great demand on a foreign
country, India has export 38, 00,000 MT of basmati rice; United Arab
Emirates, Saudi Arabia, Kuwait, Iran, and Iraq are a major export
destination for rice.
If you are looking for a profitable business then the rice mill plant is
the best option for you, here in this article you will get the detailed
study and business plan for the rice mill plant.

3. Licenses
required for
Rice mill
To start Rice Mill Plant, you need licenses and permit from your state
government authority.
#1) Registration of Firm: You may start the small to medium scale cashew nut
processing unit either a Proprietorship or Partnership Firm.
If you are starting this business as One Person Company, then you have to
register your firm as a proprietorship.
For partnership operation, you have to register as a limited liability
partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).
#2) Udyog Aadhaar MSME Registrations: Udyog Aadhaar MSME Registration
helps you to get the facility from the government you are eligible to take
benefit of the government scheme.
# 3) Factory License: apply for factory license to start rice mill production.
# 4) No pollution certificate: Apply for ‘consent to operate’ and ‘consent to
establish’ from the Pollution Control Board.

4. Licenses
required for
Rice mill
# 5) Acts 1958: Apply for the Rice-Milling
Industry (Regulation) Act, 1958.
# 6) PFA and ESIC Registration: if your rice mill plant
has employees then you need to get PFA and ESIC
registration for the employees according to labors law.
# 7) IEC Registrations: if you are planning to export
your rice then it is mandatory to obtain IEC code.
# 8) FSSAI License: rice mill plant is categorized in
the food industry; therefore, you need to apply for
FSSAI license (Food Safety and Standard Authority of
India)
# 9) GST Registration: obtain GST number which is
compulsory for every business after GST rule is applied.

5. Target Market
/ Audience
 Generally, buyers of rice from
rice mill are Wholesalers,
retailers and customers.

6. List of Machines
1. Grading machine
2. Grain dryer
3. Lighting equipment
4. Measure and packing machine
5. Paddy husker machine
6. Paddy separator machine:
7. Rice cleaning machine
8. Rice color sorter
9. Rice de-stoner machine
10. Rice milling detection machine
11. Rice polishing machine
12. Rice whitener machine

7. Costing& P&L
Cost of Project
Land & Building 2.70 (Rs. lakhs)
Plant & Machinery 2.3
Other assets 0.5
Contingencies & pre-expenses 0.9
Margin money 1.6
Margin money 1.8
Total 8
Means of Finance
Promoters Contribution 2.40 (Rs. lakhs)
Term Loan 5.6
Total 8
Profitability:(60%capacity)
Sales 33.30 (Rs. lakhs)
Raw material 24.3
Salary 1.37
Utilities 0.36
Stores & Spares 0.18
Repairs & Maintenance 0.21
Selling expenses 3.33
Administrative expenses 0.3
Depreciation 0.71
Interest on T.L 0.6
Interest on W.C 0.53
Cost of production 1.96
Profit 1.41