Dal Mill Project Report (Toor), Dal Mill Cost, Subsidy

Introduction to toor dal mill project report: Toor dal milling is a profitable business in India. You can plan the business set up based on the production output. As toor dal is an essential and popular food grain in India. Dal milling is the third largest food processing industry in India next to rice and wheat.

The production of pulse in India ranges from 12 to 15 million tons per year which requires separation process to make them available in the market. Generally pulses are consumed as one of the variety of food preparation after conversion into de-husked split pulse which can be cooked easily. According to few surveys, it is calculated that more than 70% of the pulse produced in India is converted into dal.

A step by step guide to dal mill project report

Dal milling stands as the third largest food processing industries especially after rice and wheat. Milling of pulses is into practiced as a small-scale rural operation during ancient times and more recently it is into large commercial operation because of the increase in demand for the food.

But large scale dal milling industries need huge capital investments, power and raw materials supply to gain economic stability and produces high quality product while small scale or tiny scale units produce inferior quality product with lesser yield compared to large scale dal industries. Although some small-scale units for example mini dal mill give satisfactory in few procedures such as de-husking pulses, some of the machine parameters, smallcapacity and specifically wet pre-milling treatment become limitations for these units. However, such small or mini scale units are used only for bolder or easy to mill pulses such as toor dal etc.

There has been a continuous demand from the entrepreneurs and consumers for a small-scale mill of about 300 kg per hour capacity, which can process all pulses including minor pulses.The versatile dal millis designed to process different types of pulses including minor ones. The mill is comparatively free from dust pollution.

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The profitability and success of toor dal mill project depends upon the regular supply of raw materials. If you live in an area with large scale production of toor dal then you can start the toor dal mill project business as you will get the continuous supply of the toor dal raw materials.

Subsidies available for toor dal mill project

To establish toor dal mill project you can also avail subsidies around 25% in rural and urban areas where as in the difficult areas you can avail 33% of the machinery cost and others to set up a small or mini scale units in India. Each and every state will be getting these subsidies from government to encourage the entrepreneurs. This amount will be released at two intervals as first instalment and second instalments. Hence you can even avail for these subsidies along with bank loans which makes you ease for setting up an toor dal mill project especially in rural areas.

Guidelines for starting a toor dal mill project in India

The following points should be well noted to prepare a checklist to establish the business plant. These include-

1. Check the space availability for establishing the toor dal mill project plant. You can also plan for renting a space if you don’t have your own space.
2. You can start your own project either by capital or bank finance; if you go for bank finance then you need to provide the collateral security to the banks.
3. The machinery process varies based on the type of dal for example toor dal machinery based on the cost of the machinery.

Sample project report details of toor dal mill

It has two major segments one is the technical aspect and the other is project economics.

Technical aspects of toor dal mill project

The technical aspects of toor dal mill project includes the following-

1. The production capacity of toor dal mill 159 kg/hr
2. The number of shifts should be two.
3. The minimum daily production capacity for the mill should be 2.53 tons
4. 70% of capacity utilization should be present.
5. The number of working days per annum of the mill should be 300 days.
6. The annual production of the mill should be 6%
7. Loss during de-husking should be 6% and it should not exceed this percentage.
8. The net production per annum should be 500 tons.

Infrastructure requirements for toor dal mill project

These includes the following-

1. The land area should cover at least 1000 sq. ft to setup the toor dal mill project.
2. Power requirement should be 25 KW to establish a toor dal mill project.
3. The water quantity required is minimum level.

Project economics for toor dal mill project

This can be divided into fixed capital and working capital requirement. This includes the following list-

Fixed capital requirements

These includes the following –

1. If the land is your own to setup the project, then the amount would be reduced in the project economics.
2. The costs involved for site development is Rs.40,000
3. Costs involved in the construction of work shed is Rs.5,00,000
4. Costs involved in setting up toor dal mill plant and machinery is Rs.2,00,000
5. The miscellaneous charges and fixed assets is Rs.50,000
6. The peri-operative expenses involved in setting up the mill project is Rs.35,000

The total fixed capital investments include Rs.8,25,000.

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Working capital requirements

These include the following –

1. Raw materials and consumables for 1 month is Rs.9,00,000
2. Costs involved for finished goods for 1 week is Rs.3,00,000
3. Expenses for workers for 1 month is Rs.50,000
4. Receivables for 1 week is Rs.3,00,000

The total working capital costs for toor dal mill is Rs.15,50,000

Working capital to be financed as below-
Marginal money is Rs.4,00,000
Bank finance provided is Rs.12,00,000

Term loan is 75% in Rs.6,00,000
Promoter’s equity is 25% inRs.2,00,000

Total costs involved is Rs.8,00,000.

Cost of the product and profit percentage

Capacity utilization is 70% – Set A
Output in million tons is 500MT/annum – Set B
Annual revenue is Rs.12,50,000

The cost of toor dal is Rs.25,000 per tonne and the annual sales for 500MT is Rs.12,50,000

Hence the profit can be expected more than 40%.

Toor dal mill machinery

The machinery for toor dal mill includes the precleaner, de-huskers, grader, bucket elevators, aspirators and blowers, control panels, destoner, pedal mixer and packaging unit.

Process of toor dal milling

The basic process in toor dal milling is cleaning the raw materials, adding oil and sun or mechanical drying, grading, conditioning and de-husking, splitting, separation, polishing and bagging.

The main process is removal of the outer husk layer and splitting the grain into two equal halves for the milled dal is the main thing involved and the next one is drying method.

Registration and licensing for toor dal mill project

For setting up this type of business requires different type of licensing, permissions and registrations. These include registration of the business, trade license from the municipality authority and you should also get registering for LLP or Pvt. Ltd or Ltd. Company. Then after registering and then you need to apply for MSME UdyogAadhaar registration online. Later you need to apply for FSSAI registration and GST number. This type of factory or industry does not need any NOC from pollution control board.

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