Model Detailed Project Report

SOYA MILK UNIT

Prepared by

National Institute of Food Technology

Entrepreneurship and Management(NIFTEM)
Plot No. 97, Sector 56, HSIIDC, Industrial Estate, Kundli,
Sonipat, Haryana 131028
Ministry of Food Processing Industries, Government of India
1. INTRODUCTION

Soya Milk is an inexpensive and remarkably versatile high protein food made from
soya beans. It is a white liquid made from the seed. Unlike most other protein foods,
milk is entirely free from cholesterol and low in fat (specially saturated fats).

The quality of protein is as high as that found in chicken. It is also good for dieters
as this contain low calories. It is an excellent food for babies, children, elderly
people, pregnant and lactating women since it contains vegetable protein which is
very nutritious and easy to digest.

Soya milk and its derivatives are the cheapest source of protein, its derivatives tofu
(soya paneer) makes tasty dishes like matar paneer, Palak paneer etc. and snacks like
soya burger, patties, sandwiches, pakoras etc. and also used in desserts.

2. MARKET POTENTIAL:

With the increasing health consciousness among the general people, the use of
soyabean is getting acceptance in the form of textured vegetable protein (popularly
known as Soya baadi or Soya nuggets), Soya fortified wheat flour, Soya milk, Tofu
and Soya curd etc. Being mainly the country of vegetarians, India has indeed a very
great potential for Soya milk, paneer and curd. Experts predict that the Soya food
industry will grow 20% annually over the next few years.
3. PRODUCT DESCRIPTION

3.1 PRODUCT BENEFITS

It’s a good source of potassium and can be fortified with Vitamins A, B-12
and D as well as Calcium. It contains as much protein as Cow’s Milk, yet is
lower in calories than the whole milk and about equal to the calories in 1
percent or 2 percent milk. It contains very little saturated fats.

3.2 RAW MATERIAL

Basic Raw material requirement are as follows:

1. Soya bean
2. Chemicals, flavors, color and other material etc.
3. Packaging material for milk
4. Sugar

3.3 MANUFACTURING PROCESS

Soya milk is made from whole soya beans or full-fat soya flour. The dry beans are
soaked in water for a minimum of three hours up to overnight depending on the
temperature of the water. The rehydrated beans then undergo wet grinding with
enough added water to give the desired solids content to the final product which has
a protein content of 1–4%, depending on the method of production. The ratio of
water to beans on a weight basis is 10:1 for traditional soya milk. The resulting
slurry or purée is brought to a boil in order to improve its taste properties by heat
inactivating soybean trypsin inhibitor, improve its flavor, and to sterilize the product.
Heating at or near the boiling point is continued for a period of time, 15–20 minutes,
followed by the removal of insoluble residues (soya pulp fiber) by filtration.

Processing requires the use of an anti-foaming agent or natural defoamer during the
boiling step. Bringing filtered soya milk to a boil avoids the problem of foaming. It
is generally opaque, white or off-white in color, and approximately the same
consistency as cow's milk. Raw soya milk may be sweetened, flavored, and fortified
with micronutrients. Once fully processed, soya milk products are typically sold in
plastic bottles or plastic-coated cartons, such as tetra packs.

Soyabeans

Washing

Soaking

Grinding

Centrifugal Filtration

Formulation

Sterilization

Cooling

Filling
4. PROJECT COMPONENTS

4.1 Land & Building

The approximate total area required for complete small-scale factory setup is
1200-1500 Sq. ft. approximately smooth production

4.2 Plant & Machinery

Dry Bean These equipment’s are class of

Tank storage equipment’s which are
specifically designed for dry raw
material of small granule
composition.

Soya bean This machine is basically used to

Transferring transfer soya bean to Soaking and
Machine washing machine for further process.

Soya bean Soybean Soaking & Washing

Soaking & Machine use compressed air
Washing injection in water to roll the beans,
Machine separate bad Soybean and other
impurities which float on the water
and then are simply discharged with
overflow to get the pure soybean.
Grinding and Grinding & Separating Machine are
Separating used for grinding rice, soybeans and
Machine
all sorts of beans into soy milk, rice
milk and carrot cakes. Many small
stores choose the
versatile machine for a priority to
lower the cost
Soymilk In this machine time and temperature
Cooking for cooking are operated on the
panel and thus facilitate cooking of
Machine condensed food. They can be used
for cooking not only soy milk but
also Rice Milk, soup and
concentrated sauce like spaghetti
sauce.

Soymilk After the soy milk is prepared this

Storage Tank equipment is used to store the soy
milk. Therefore, they serve as
machines for temporary storage and
transports the right amount of soy
milk to the next device in operation
on the basis of device capacity.

Sugar This machine is used to dissolve

Dissolving sugar in the soy milk in the right
Machine quantity and provides taste to the
product.
Soy milk Soy milk Twin Filter
Twin Filter Machine removes the main residues
machine from expansion of boiled pulp and
whey sugar particles that are too
large.

Homogenizer This equipment is used in the

production of liquid mixtures in
which the said mixture, is forced
through a small passage at high
velocity. This machine reduces
solute globule size to a very small
size in order to prevent aggregate
formation.

Soymilk Plate Soy milk Plate Heat

Heat Exchanger Equipment is a
Exchanger pasteurization process to
Machine improve soy milk's shelf life.
Using Soy milk Plate Heat
Exchanger Equipment destroys
bacteria and improves soy
milk's quality. Soy milk Plate Heat
Exchanger Equipment is suitable for
the production of soy milk (Long
Life soy milk) or juice.

Soymilk This machine is used to fill the

Filling and finished product in pouches or cans
Sealing of different sizes and the product is
Equipment ready for sale in the market.
Note: Approx. Total Machinery cost shall be Rs 14.90 lakhs excluding GST and
Transportation Cost.

4.3 Power Requirement

The borrower shall require power load of 15 KW which shall be applied with Power
Corporation. However, for standby power arrangement the borrower shall
purchase DG Set.

4.4 Manpower Requirement

7 Manpower are required for the Asafoetida Manufacturing Process.

Includes:

2 Skilled Labour

3 Unskilled Labour

1 Administrative Staffs

1 Accountant
5. FINANCIALS

5.1 Cost of Project

(in Lacs)

Own Bank
PARTICULARS AMOUNT Contribution Finance
25.00% 75.00%
Land & Building Owned /rented
Plant & Machinery 14.90 3.73 11.18

Furniture & Fixtures and Other Assets 1.20 0.30 0.90

Working capital 2.67 0.67 2.00
Total 18.77 4.69 14.08

5.2 Means of Finance

PARTICULARS AMOUNT

Own Contribution 4.69

Bank Loan 12.08

Working capital Limit 2.00

Total 18.77
5.3 Projected Balance Sheet

(in Lacs)
PROJECTED BALANCE SHEET

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Liabilities

Capital

opening balance 5.34 6.15 7.27 9.41

Add:- Own Capital 4.69

Add:- Retained Profit 1.15 2.31 4.11 6.15 8.13

Less:- Drawings 0.50 1.50 3.00 4.00 6.00

Closing Blance 5.34 6.15 7.27 9.41 11.54

Term Loan 10.73 8.05 5.37 2.68 -

Working Capital Limit 2.00 2.00 2.00 2.00 2.00

Sundry Creditors 0.19 0.21 0.24 0.27 0.31

Provisions & Other Liab 0.35 0.42 0.50 0.60 0.73

TOTAL : 18.62 16.84 15.38 14.98 14.57

Assets

Fixed Assets ( Gross) 16.10 16.10 16.10 16.10 16.10

Gross Dep. 2.36 4.36 6.07 7.53 8.78

Net Fixed Assets 13.75 11.74 10.03 8.57 7.32

Current Assets

Sundry Debtors 2.66 3.12 3.57 4.05 4.56

Stock in Hand 0.46 0.51 0.56 0.62 0.68

Cash and Bank 1.76 1.48 1.23 1.75 2.02

TOTAL : 18.62 16.84 15.38 14.98 14.57

5.4 Projected Cash Flow
(in Lacs)
PROJECTED CASH FLOW STATEMENT

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

SOURCES OF FUND

Own Margin 4.69

Net Profit 1.15 2.31 4.11 6.21 8.29

Depreciation & Exp. W/off 2.36 2.01 1.71 1.46 1.25

Increase in Cash Credit 2.00 - - - -

Increase In Term Loan 12.08 - - - -

Increase in Creditors 0.19 0.03 0.03 0.03 0.03

Increase in Provisions & Oth lib 0.35 0.07 0.08 0.10 0.12

TOTAL : 22.81 4.41 5.93 7.80 9.69

APPLICATION OF FUND

Increase in Fixed Assets 16.10

Increase in Stock 0.46 0.05 0.05 0.06 0.06

Increase in Debtors 2.66 0.46 0.45 0.48 0.51

Repayment of Term Loan 1.34 2.68 2.68 2.68 2.68

Drawings 0.50 1.50 3.00 4.00 6.00

Taxation - - - 0.06 0.16

TOTAL : 21.05 4.69 6.19 7.28 9.42

Opening Cash & Bank Balance - 1.76 1.48 1.23 1.75

Add : Surplus 1.76 (0.28) (0.25) 0.52 0.27

Closing Cash & Bank Balance 1.76 1.48 1.23 1.75 2.02
5.5 Projected Profitability
(in Lacs)
PROJECTED PROFITABILITY STATEMENT

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Capacity Utilisation % 60% 65% 70% 75% 80%

SALES

Gross Sale

Soya Milk 26.55 31.16 35.66 40.46 45.55

Total 26.55 31.16 35.66 40.46 45.55

COST OF SALES

Raw Material Consumed 8.10 9.21 10.42 11.72 13.13

Electricity Expenses 2.16 2.38 2.61 2.87 3.16

Depreciation 2.36 2.01 1.71 1.46 1.25

Wages & labour 6.12 6.73 7.41 8.15 8.96

Repair & maintenance 0.53 0.78 0.89 1.01 1.14

Cost of Production 19.27 21.11 23.04 25.21 27.63

Add: Opening Stock /WIP - 0.32 0.35 0.38 0.42

Less: Closing Stock /WIP 0.32 0.35 0.38 0.42 0.46

Cost of Sales 18.94 21.08 23.01 25.18 27.59

GROSS PROFIT 7.61 10.08 12.65 15.28 17.96

28.64% 32.36% 35.48% 37.76% 39.42%

Salary to Staff 2.40 2.64 2.90 3.19 3.51

Interest on Term Loan 1.19 1.05 0.75 0.46 0.16

Interest on working Capital 0.20 0.20 0.20 0.20 0.20

Rent 2.40 2.64 2.90 3.19 3.51

selling & adm exp 0.27 1.25 1.78 2.02 2.28

TOTAL 6.45 7.77 8.54 9.07 9.67

NET PROFIT 1.15 2.31 4.11 6.21 8.29

4.34% 7.41% 11.53% 15.35% 18.20%

Taxation - 0.06 0.16

PROFIT (After Tax) 1.15 2.31 4.11 6.15 8.13

5.6 Production and Yield

COMPUTATION OF PRODUCTION OF SOYA MILK

Items to be Manufactured

Soya Milk

Machine Production capacity per Hour 12.50 KG

Working hours in a day 8

Production Per Day 100

No of Working Days in Month 25

No of Working Days in a Year 300

Machine capacity per annum 30,000 KG

Production per annum 150,000 Cans of 200 gm

Production of Soya Milk

Production Capacity KG
1st year 60% 90,000
2nd year 65% 97,500
3rd year 70% 105,000
4th year 75% 112,500
5th year 80% 120,000
Raw Material Cost
Year Capacity Rate Amount

Utilisation (per 200 gm) (Rs. in lacs)

1st year 60% 9.00 8.10

2nd year 65% 9.45 9.21

3rd year 70% 9.92 10.42

4th year 75% 10.42 11.72

5th year 80% 10.94 13.13

5.7 Sales Revenue

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year

Op Stock - 1,500 1,625 1,750 1,875

Production 90,000 97,500 105,000 112,500 120,000

Less : Closing Stock 1,500 1,625 1,750 1,875 2,000
Net Sale 88,500 97,375 104,875 112,375 119,875
sale price per 200 gm 30.00 32.00 34.00 36.00 38.00

Sales (in Lacs) 26.55 31.16 35.66 40.46 45.55

5.8 Working Capital Assessment
(in Lacs)
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Finished Goods

0.32 0.35 0.38 0.42 0.46

Raw Material

0.14 0.15 0.17 0.20 0.22

Closing Stock 0.46 0.51 0.56 0.62 0.68

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)

Particulars Amount Own Margin Bank Finance

Finished Goods & Raw Material 0.46

Less : Creditors 0.19

Paid stock 0.27 25% 0.07 75% 0.20

Sundry Debtors 2.66 25% 0.66 75% 1.99

2.92 0.73 2.19

WORKING CAPITAL LIMIT DEMAND ( from Bank) 2.00

5.9 Power, Salary & Wages Calculation

Utility Charges (per month)

Particulars value Description
Power connection required 15 KWH
consumption per day 120 units
Consumption per month 3,000 units
Rate per Unit 10 Rs.
power Bill per month 30,000 Rs.

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Month Employees Salary

Skilled (in thousand rupees) 12,000 2 24,000

Unskilled (in thousand rupees) 9,000 3 27,000

Total salary per month 51,000

Total annual labour charges (in lacs) 6.12

BREAK UP OF Staff Salary CHARGES

Particulars Salary No of Total

Rs. per Month Employees Salary

Accountant 12,500 1 12,500

Administrative Staffs 7,500 1 7,500

Total salary per month 20,000

Total annual Staff charges (in lacs) 2.40

5.10 Depreciation
(in Lacs)
COMPUTATION OF DEPRECIATION
Description Plant & Machinery Furniture TOTAL

Rate of Depreciation 15.00% 10.00%

Opening Balance - - -

Addition 14.90 1.20 16.10

Total 14.90 1.20 16.10

Less : Depreciation 2.24 0.12 2.36

WDV at end of Year 12.67 1.08 13.75

Additions During The Year - - -

Total 12.67 1.08 13.75

Less : Depreciation 1.90 0.11 2.01

WDV at end of Year 10.77 0.97 11.74

Additions During The Year - - -

Total 10.77 0.97 11.74

Less : Depreciation 1.61 0.10 1.71

WDV at end of Year 9.15 0.87 10.03

Additions During The Year - - -

Total 9.15 0.87 10.03

Less : Depreciation 1.37 0.09 1.46

WDV at end of Year 7.78 0.79 8.57

Additions During The Year - - -

Total 7.78 0.79 8.57

Less : Depreciation 1.17 0.08 1.25

WDV at end of Year 6.61 0.71 7.32

5.11 Repayment schedule

REPAYMENT SCHEDULE OF TERM LOAN

Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance

1st month - 12.08 12.08 - - 12.08

2nd month 12.08 - 12.08 0.11 - 12.08
3rd month 12.08 - 12.08 0.11 - 12.08
4th month 12.08 - 12.08 0.11 12.08
5th month 12.08 - 12.08 0.11 12.08
6th month 12.08 - 12.08 0.11 12.08
7th month 12.08 - 12.08 0.11 0.22 11.85
8th month 11.85 - 11.85 0.11 0.22 11.63
9th month 11.63 - 11.63 0.11 0.22 11.40
10th month 11.40 - 11.40 0.10 0.22 11.18
11th month 11.18 - 11.18 0.10 0.22 10.96
12th month 10.96 - 10.96 0.10 0.22 10.73

1.19 1.34
2nd Opening Balance

1st month 10.73 - 10.73 0.10 0.22 10.51

2nd month 10.51 - 10.51 0.10 0.22 10.29
3rd month 10.29 - 10.29 0.09 0.22 10.06
4th month 10.06 - 10.06 0.09 0.22 9.84
5th month 9.84 - 9.84 0.09 0.22 9.62
6th month 9.62 - 9.62 0.09 0.22 9.39
7th month 9.39 - 9.39 0.09 0.22 9.17
8th month 9.17 - 9.17 0.08 0.22 8.94
9th month 8.94 - 8.94 0.08 0.22 8.72
10th month 8.72 - 8.72 0.08 0.22 8.50
11th month 8.50 - 8.50 0.08 0.22 8.27
12th month 8.27 - 8.27 0.08 0.22 8.05
1.05 2.68
3rd Opening Balance

1st month 8.05 - 8.05 0.07 0.22 7.83

2nd month 7.83 - 7.83 0.07 0.22 7.60
3rd month 7.60 - 7.60 0.07 0.22 7.38
4th month 7.38 - 7.38 0.07 0.22 7.16
5th month 7.16 - 7.16 0.07 0.22 6.93
 6th month 6.93 - 6.93 0.06 0.22 6.71
7th month 6.71 - 6.71 0.06 0.22 6.48
8th month 6.48 - 6.48 0.06 0.22 6.26
9th month 6.26 - 6.26 0.06 0.22 6.04
10th month 6.04 - 6.04 0.06 0.22 5.81
11th month 5.81 - 5.81 0.05 0.22 5.59
12th month 5.59 - 5.59 0.05 0.22 5.37
0.75 2.68
4th Opening Balance

1st month 5.37 - 5.37 0.05 0.22 5.14

2nd month 5.14 - 5.14 0.05 0.22 4.92
3rd month 4.92 - 4.92 0.05 0.22 4.70
4th month 4.70 - 4.70 0.04 0.22 4.47
5th month 4.47 - 4.47 0.04 0.22 4.25
6th month 4.25 - 4.25 0.04 0.22 4.02
7th month 4.02 - 4.02 0.04 0.22 3.80
8th month 3.80 - 3.80 0.03 0.22 3.58
9th month 3.58 - 3.58 0.03 0.22 3.35
10th month 3.35 - 3.35 0.03 0.22 3.13
11th month 3.13 - 3.13 0.03 0.22 2.91
12th month 2.91 - 2.91 0.03 0.22 2.68
0.46 2.68
5th Opening Balance
1st month 2.68 - 2.68 0.02 0.22 2.46
2nd month 2.46 - 2.46 0.02 0.22 2.24
3rd month 2.24 - 2.24 0.02 0.22 2.01
4th month 2.01 - 2.01 0.02 0.22 1.79
5th month 1.79 - 1.79 0.02 0.22 1.57
6th month 1.57 - 1.57 0.01 0.22 1.34
7th month 1.34 - 1.34 0.01 0.22 1.12
8th month 1.12 - 1.12 0.01 0.22 0.89
9th month 0.89 - 0.89 0.01 0.22 0.67
10th month 0.67 - 0.67 0.01 0.22 0.45
11th month 0.45 - 0.45 0.00 0.22 0.22
12th month 0.22 - 0.22 0.00 0.22 -

0.16 2.68

DOOR TO DOOR 60 MONTHS

MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
5.12 Financial Ratio Analysis

FINANCIAL INDICATORS

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
TURNOVER 26.55 31.16 35.66 40.46 45.55
GROSS PROFIT 7.61 10.08 12.65 15.28 17.96
G.P. RATIO 28.64% 32.36% 35.48% 37.76% 39.42%

NET PROFIT 1.15 2.31 4.11 6.21 8.29

N.P. RATIO 4.34% 7.41% 11.53% 15.35% 18.20%

CURRENT ASSETS 4.87 5.10 5.35 6.41 7.26

CURRENT LIABILITIES 2.54 2.63 2.75 2.88 3.03
CURRENT RATIO 1.92 1.94 1.95 2.23 2.39

TERM LOAN 10.73 8.05 5.37 2.68 -

TOTAL NET WORTH 5.34 6.15 7.27 9.41 11.54
DEBT/EQUITY 2.01 1.31 0.74 0.29 -

TOTAL NET WORTH 5.34 6.15 7.27 9.41 11.54

TOTAL OUTSIDE LIABILITIES 13.27 10.68 8.11 5.56 3.03
TOL/TNW 2.48 1.74 1.12 0.59 0.26

PBDIT 4.89 5.56 6.77 8.33 9.90

INTEREST 1.39 1.25 0.95 0.66 0.36
INTEREST COVERAGE
RATIO 3.53 4.47 7.13 12.71 27.50

WDV 13.75 11.74 10.03 8.57 7.32

TERM LOAN 10.73 8.05 5.37 2.68 -
FACR 1.28 1.46 1.87 3.19 -
5.13 DSCR

CALCULATION OF D.S.C.R

1st 2nd 3rd 4th 5th

PARTICULARS year year year year year

CASH ACCRUALS 3.51 4.32 5.82 7.61 9.37

Interest on Term Loan 1.19 1.05 0.75 0.46 0.16
Total 4.69 5.36 6.57 8.06 9.53

REPAYMENT
Instalment of Term Loan 1.34 2.68 2.68 2.68 2.68
Interest on Term Loan 1.19 1.05 0.75 0.46 0.16

Total 2.53 3.73 3.43 3.14 2.84

DEBT SERVICE COVERAGE

RATIO 1.86 1.44 1.91 2.57 3.35
AVERAGE D.S.C.R. 2.18

5.14 Break Even Point Analysis

BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 26.55 31.16 35.66 40.46 45.55

Less : Op. WIP Goods - 0.32 0.35 0.38 0.42

Add : Cl. WIP Goods 0.32 0.35 0.38 0.42 0.46

Total Sales 26.87 31.19 35.69 40.49 45.59

Variable & Semi Variable Exp.

Raw Material Consumed 8.10 9.21 10.42 11.72 13.13

Electricity Exp/Coal Consumption at 85% 1.84 2.02 2.22 2.44 2.69

Wages & Salary at 60% 5.11 5.62 6.19 6.80 7.48

Selling & adminstrative Expenses 80% 0.21 1.00 1.43 1.62 1.82

Interest on working Capital 0.2 0.2 0.2 0.2 0.2

Repair & maintenance 0.53 0.78 0.89 1.01 1.14

Total Variable & Semi Variable Exp 15.99 18.83 21.34 23.80 26.46

Contribution 10.88 12.36 14.35 16.69 19.13

Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at 15% 0.32 0.36 0.39 0.43 0.47

Wages & Salary at 40% 3.41 3.75 4.12 4.54 4.99

Interest on Term Loan 1.19 1.05 0.75 0.46 0.16

Depreciation 2.36 2.01 1.71 1.46 1.25

Selling & adminstrative Expenses 20% 0.05 0.25 0.36 0.40 0.46

Rent 2.40 2.64 2.90 3.19 3.51

Total Fixed Expenses 9.73 10.05 10.24 10.48 10.84

Capacity Utilization 60% 65% 70% 75% 80%

OPERATING PROFIT 1.15 2.31 4.11 6.21 8.29

BREAK EVEN POINT 54% 53% 50% 47% 45%

BREAK EVEN SALES 24.02 25.36 25.47 25.43 25.83

6. LICENSE & APPROVALS

 Obtain the GST registration.

 Additionally, obtain the UDYAM registration Number.
 Fire/pollution license as required.
 FSSAI License
 Factory License
 Choice of a Brand Name of the product and secure the name with Trademark if
required.

7. ASSUMPTIONS

1. Production Capacity of Soya Milk is 100 kg per day. First year, Capacity has
been taken @ 60%.

2. Working shift of 8 hours per day has been considered.

3. Raw Material stock is for 5 days and Finished goods Closing Stock has

been taken for 5 days.

4. Credit period to Sundry Debtors has been given for 30 days.

5. Credit period by the Sundry Creditors has been provided for 7 days.

6. Depreciation and Income tax has been taken as per the Income tax Act,

1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 15 KW.

10. Increase in sales and raw material costing has been taken @ 5% on an yearly
basis.
 Limitations of the Model DPR and Guidelines for Entrepreneurs

Limitations of the Model DPR

i. This model DPR has provided only the basic standard components and methodology to be
adopted by an entrepreneur while submitting a proposal under the Formalization of Micro Food
Processing Enterprises Scheme of MoFPI.

ii. This is a model DPR made to provide general methodological structure not for specific
entrepreneur/crops/location. Therefore, information on the entrepreneur, forms and structure
(proprietorship/partnership/cooperative/ FPC/joint stock company) of his business, details of
proposed DPR, project location, raw material base/contract sourcing, entrepreneurs own SWOT
analysis, detailed market research, rationale of the project for specific location, community
advantage/benefit from the project, employment generation and many more detailed aspects not
included.

iii. The present DPR is based on certain assumptions on cost, prices, interest, capacity utilization,
output recovery rate and so on. However, these assumptions in reality may vary across places,
markets and situations; thus the resultant calculations will also change accordingly.