Rural Entrepreneurship and Marketing: National Institute of Rural Development and Panchayati Raj

National Institute of Rural Development and Panchayati Raj
Rural Entrepreneurship and Marketing
Business Plan for Millet Cookies Enterprise
Under the guidance of:

Vivek Kumar
Submitted By:
Rashmika V 12_PGDM(RM)
Sai Sreekanth 17_PGDM(RM)
Date of Submission: 10-10-2019

Introduction
Millets are one of the emerging food grains in India with increasing popularity day-
by-day, mainly due to its reaping health benefits. Millets are coarse grains and a
repository of protein, fibre, vitamins and minerals. They include jowar (sorghum), ragi
(finger millet), korra (foxtail millet), arke (kodo millet), sama (little millet), bajra (pearl
millet), chena/barr (proso millet), sanwa (barnyard millet) etc. These millets are not
only highly nutritious but target some of the highest malnutrition problems.
It is consumed in several forms amongst which cookies are considered the most
attractive form to capture the interests of various age group in the modernized world.
This cookie can be a great snack for diabetic patients due to its sugar-free property of
millets.
In addition to health benefits, millets are good for the planet reflecting the low water
footprint and use of fewer pesticides and fertilizers, thereby resulting in lower carbon
footprint. This is not only better for the environment and health but benefits the
farmers with profit as there is less financial investment risk for farmers.
Market Potential
With the increasing demand and supply for wide range of snack foods, a factor of
fitness and a question as to “is it a healthy snack?” arises before the consumer picks
up the snack. Here the product “Millet cookies” strikes the barrier of doubt and
questions leading to a great potential for market. Bakery, super-markets, café-shops,
retail stores, farmer’s outlets, tea shop etc can be catered with millet cookies.
Segmentation based on age-group, gender, diabetic patients, fitness freak, health
conscious folks indicates a great market potential for millet cookies. There is a huge
demand to be met for this product in both rural and urban space in different parts of
the country.
Basis and Presumptions

 The scheme is based on single shift per day for 300 working days in a year
@75% working efficiency.
 Raw materials are available throughout the year.
 Three-year period is required for achieving full capacity utilization.
 Labour wages are as per the rate Rs.300 per day, per person for 8 hours.
 Interest on capital investment @ 12% p.a.
 Margin money is 25%
 Land and Building rented, 50 sq.ft @ Rs.1000 per month.
Implementation Schedule
A period of three months would be required for the start of commercial production
from the date of approval of scheme.
Technical aspects
Process of manufacturing:
Stage-1: The millets are procured from the local farmers at the price fixed during the
deal. Post procurement, the millets are cleaned followed by a process of de-husking
to separate the husk from millet.
Stage-2: The cleaned and dried millet are now crumbed by the process of milling. This
process is followed by sieving and the milled millets are stored in the container.
Stage-3: Preparation of dough is carried out by an automatic dough making machine

wherein the ingredients such as milled millet powder, salt, butter, flavour, essence,
dry fruits etc as per the product requirements are added into it. The machine blends
the ingredients evenly and a standard consistent dough is produced on addition of
water. Jaggery and Starch is added to the prepared dough as per the requirement of
order/products.
Stage-5: Moulds are prepared from the dough in various shapes/sizes as per SOP and
final product- millet cookies are baked in the baking machine.
Stage-6: Packaging of the cookies involve both manual and automated machine help
to present the final product in an attractive manner along with preserving the cookies
intact.
Cleaning & De-

Husking
Milling
Preparation of
Dough
Addition of
Jaggery & Starch
Baking
Packaging
Production Capacity
 Millet cookies per annum: 30,000 kg
 Value @ Rs.100 per kg: Rs. 30,00,000/-
Pollution Control
The millet cookies processing unit will not hinder the environment through any sort
of pollution issues. However, the pollution control board is informed the same.
1. Fixed Capital
a) Land and Building 50sq. ft @ Rs.1000 p.m.
b) Machinery and Equipment
Sl. No. Name of Machinery No.s Rate Price

1 Power operated milling 1 60,000 60,000
machine
2 Dough making machine 1 15,000 15,000
3 Utensils 4 2,500 10,000
4 Baking Machine 1 1,00,000 1,00,000
5 Packaging Machine 1 42,000 42,000
6 Erection and 10,000
Electrification
7 Furniture and Fixtures 10,000
Total 2,47,000
2. Working Capital
a) Raw material (per month)
Sl. No. Particulars Qty Rate Total

1 Ragi 2500kg 25 62,500
2 Jaggery 250kg 40 10,000
3 Foxtail millet 250kg 50 12,500
3 Starch 250kg 80 20,000
4 Poly bag & LS 10,000 10,000
paper strip
5 Cartons 250 20 5,000

Total 120,000
b) Staff and Labour
Sl. No. Designation No. Rate Amount

1 Supervisor 1 15,000 15,000
2 Skilled worker 2 10,000 20,000
3 Labour 2 6,000 12,000
4 Driver cum salesman 1 10,000 10,000
Total 57,000
c) Utilities
Sl. No. Item Amount

1 Electricity 2,000
2 Water 1,000
Total 3,000
d) Other Contingent Expenses
Sl. No. Item Amount

1 Rent 1,000
2 Transportation 7,500
3 Stationary 500
4 Repair & Maintenance 1,000
5 Insurance 1,000
6 Telephone & others 1,000
7 Miscellaneous Expenses 1,000
Total 13,000
Total working capital (per month) (a+b+c+d)

1 Raw material 120,000
2 Staff & Labour 57,000
3 Utilities 3,000
4 Other Contingent Expenses 13,000
Total working capital/month 193,000
Working Capital (for 3 months)
1,93,000 * 3 = 5,79,000
Total capital investment

1 Fixed Capital 2,47,000
2 Working capital for 5,79,000
3 months
Total 826000
Financial analysis
1 Total recurring cost 23,16,000
2 Depreciation on machinery, 24,700
tools and furniture
3 Interest on capital investment 99,120

Total 24,39,820
Turnover (per year)

Millet cookies 30,000kg/year @ 90kg = 27,00,000
Net profit (before taxation)

1 Turnover 27,00,000
2 Cost of production 24,39,850
Total 2,60,150
Net profit Ratio

Net profit * 100/turn over per year = 2,60,150 * 100 /27,00,000
=9.63%
Rate of Return on Total sale

Net profit* 100/total investment = 260150 * 100/ 24,39,820
= 10.66%
Address of machinery & Equipment Suppliers:
1. Ace products, New Delhi – 9810264335
2. Tools villa, Durgapur, West Bengal- 0343 6610100
Raw material Suppliers

Raw materials are locally available in the market, millets are procured from local
farmers.

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National Institute of Rural Development and Panchayati Raj

Rural Entrepreneurship and Marketing

Business Plan for Millet Cookies Enterprise

Under the guidance of:

Sai Sreekanth 17_PGDM(RM)

Date of Submission: 10-10-2019

Basis and Presumptions

Stage-3: Preparation of dough is carried out by an automatic dough making machine

Cleaning & De-

Sl. No. Name of Machinery No.s Rate Price

Sl. No. Particulars Qty Rate Total

5 Cartons 250 20 5,000

Sl. No. Designation No. Rate Amount

Sl. No. Item Amount

d) Other Contingent Expenses

Sl. No. Item Amount

Total working capital (per month) (a+b+c+d)

Total capital investment

3 Interest on capital investment 99,120

Turnover (per year)

Net profit (before taxation)

Net profit Ratio

Rate of Return on Total sale

Raw material Suppliers

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