Final Sumer Project

FEASIBILITY ANALYSIS OF SETTING UP A GROUNDNUT PLANT
FEASIBILITY ANALYSIS OF SETTING UP A GROUNDNUT

PLANT
A PROJECT REPORT Submitted by
VIKRAM DUTT (09009)
MAYUR THACKER (09107)
Batch-2009-11
To
Director (PGDM)
in partial fulfillment of the requirements of
Tolani Institute of Management Studies, Adipur
for the award of the degree of
Post Graduate Diploma in Management
Tolani Institute of Management Studies
Adipur – 370205
JULY 2010
TOLANI INSTITUTE OF MANAGEMENT STUDIES 0

Acknowledgement
Through this acknowledgement we express our sincere gratitude towards all

those people who helped us in the preparation of this project that has been a learning
experience. We express our sincere thanks to all the Professors who guided us through
the project report and gave us valuable suggestion and encouragement.
We would like to express our sincere thanks to Mr. Krishan Kumar Dhingra
(Managing Director) for his guidance and support throughout our training at JMD
Oils Pvt. Ltd.
We would also like to express our gratitude to Mr. Vinod Kumar (General
Manager), Mr. Harish Nair (Technical Manager), Ms. Alpa Puri (Executive
Commodities, Trading), and all other members for being so cooperative and
entertaining our queries.
We are also thankful to our honourable Director Mr. A.J. Bhambhani for
providing us an opportunity and Dr. Tejas Pujara sir who had guided us.
We are also thankful to the Management of JMD OILS PVT LTD. who has
welcomed us and had given all the important information step by step, which will
help us in our future profession.

DECLARATION
We hereby declare that the Project work entitled Feasibility Analysis of

Groundnut Plant at JMD Oils Pvt. Ltd. submitted to Tolani Institute of Management
Studies, Adipur, is a record of an original work done by us under the guidance of
“Ms. Alpa Puri (Executive Commodities, Trading)” and this Project work is not
submitted for the award of any other Degree / Diploma / associate ship / Follow ship
or similar award.
Declaration by:
Vikram Dutt _______________________
Mayur Thacker _______________________
Date:
Place:

LIST OF CONTENTS
NO TITLE PAGE NO.

Acknowledgement I
Declaration II
List of contents III
List of tables IV
List of Figures V
List of Abbreviations VI
Executive Summary VII
Objectives of the study VIII
1 Introduction
1.1 About the company 7
1.2 About the project 13
1.3 Industry 14
1.4 Literature review 16
2 Methodology 22
3 Analysis and Interpretation 25
4 Findings 40
5 Future Scope 41
6 Conclusion 42
7 Bibliography 43

LIST OF TABLES
Sr. No. Particulars Page No.
1 Export figure by APEDA 15
2 Raw Material 32
3 Production Programme 33
4 Machinery & Equipment 34
5 Utilities 34
6 Manpower 35
7 Cost of the project 36
8 Working Capital 36
9 Total cost of Project 37
10 Means of Finance 37
11 Project Profitability Analysis 38

LIST OF FIGURES
Sr. No. Table Title Page No.

1 Country Wise Production 14
2 Java type groundnut 17
3 Bold type groundnut 18
4 Huller Machine(Decorticator) 27
5 Grading Machine 29
LIST OF ABBREVIATIONS
Short form Full Form

HPS Hand Peek Seed
APEDA Agricultural and Processed food products
Exporting Development Authority

EXECUTIVE SUMMARY
JMD produces edible commodities such as oils, ghee, salt and sugar. So,
company planned to establish a groundnut processing plant. The company gave us
chance to make a project on feasibility of groundnut through which groundnut oil can
be produced and other separate items of groundnut can also be launched in the
market. But, company mainly focused on sales of Kernel rather than making oil. We
have done the analysis of the Kernel. We have done the analysis of plant location for
JMD, Process Analysis, Technical analysis, Man power analysis, Financial Analysis.
Our plant visit and process analysis facilitated to study the entire market.
Through the whole study we have tried to give best suggestions to company.
Objectives of the Study
1) To analyse the market Technical and Financial Feasibility.

2) To study the feasibility of a plant for groundnut at JMD industrial area.

1. INTRODUCTION
1.1 About the company
JMD OILS PVT. LTD
Company Profile
Name of the company: JMD Oils Pvt. Ltd.
Constitution : A Closely held Private Limited Company
Name of Directors : Sh. Krishan Dhingra
Sh. Naresh Dhingra
Sh. Ramji Lal Sharma
Nature of Business : Manufacturing of edible oils and Ghee, Sugar, Salt.

History of JMD Oils Pvt. Ltd
The foundation of JMD group was laid by Late Sh. J R Dhingra, a social
activist and a religious and pious person. With his dynamic approach, guidance and
vision, the group, which was started with a Grocery shop, has achieved astounding
heights. Sh. J R Dhingra passed away in the year 2001 but his teachings, inspirations
and values have been well carried by his four sons namely Gulshan Kumar, Krishan
Kumar, Naresh Kumar and Sanjay Kumar. They further fragmented the JMD tree,
planted by their father and expanded, diversified and consolidated their position by
working and living jointly as a close fist.
JMD Group started the business of edible oils in the year 1987 as a
distribution unit. The promoters put their best efforts, vision and acumen in carrying
out the business. Thereafter they kept on adding multinationals and reputed
companies/brands who have shown their eagerness to be associated with the group
and promote their brand/business e.g. “ Vital”- (SM Dyechem), “Dalda Refined Oil” -
(Hindustan Lever Limited), “Sundrop, Crystal” - (Agro Tech Limited), “Sohna”-
(Markfed), “Saffola”- (Marico Industries Limited).
Meanwhile the group diversified into the business of manufacturing and

marketing of Dairy products and took franchise of “INDANA” brand in the year
1997. They took on lease the dairy plant of Foremost Industries (I) Ltd (Owner of
Indana brand) situated at Saharanpur. However in view of a high operational cost,
being old plant, the promoters discontinued the operation of the said plant and
outsourced the manufacturing the dairy operations.
Over a period of time, the group established its own market and presence in
the business of edible oils and dairy products. It has been making supplies to more
than 7000 retail outlets, Canteen Stores Departments (CSD), multinationals, five stars
hotels, restaurants, fast food centers, confectioneries manufacturers etc.

It had been outsourcing the manufacturing/refining of edible oils and dairy

products from outside jobbers. However at times there been a pressure in regard to the
quality and regularity of operations which was dependent upon the whims of the
jobbers.
As a process of backward integration the group took over a dairy plant in Dist.
Ballabhgarh (Haryana) in the year 2003. The said plant had milk processing capacity
of lakh later per day. After takeover, the promoters took the first step to reduce
operational/running cost and incurred huge capital expenditure. Thereafter they
increased the milk processing capacity to 3 lakh liters per day. Meanwhile the
company has also leased out its packing facilities for packing of fresh milk under the
brand of “Amul” catering to Delhi. The promoters put their best to convert a loss
making venture to a profitable enterprise.
In the year 2004, the group diversified and set up a plant for packaged
drinking water and aerated drinks under the brand name of „H2GO‟.Over a short
period of two years the brand has been well appreciated and well seen in the market.
It has acquired a high position in the market.
After settling the market and the production of dairy and packaged water, the
group conceived an idea to go for backward integration in edible oils. It decided to go
for establishing an edible oil refinery. Since more than 50 % of edible oils
consumption is met out of imports, the group decided to establish a plant near Sea
Port. Hence the group decided to set up a plant in Kandla, Dist: Gandhidham, Gujarat.
Accordingly it set up a plant with capacity of 800 TPD. The plant has been put to
operation in the year 2005.
Over a period of time the group has been interacting with a numerous
parties/customers comprising of multinationals, five star hotels, restaurants, fast food
centers, retailers, wholesale markets and direct consumers etc. Its products being
consumer products have a name in the household. Whereas there has been a boom in
real estate business. The group decided to operate as per the time and market

environment. After making a thorough study and research the group diversified and
entered into the business of Real Estate, housing project under the brand name of
„JTPL‟. The integrity and reputation of the promoters have paid rich dividends and
housing projects have begun with flying colours.
Company’s Mission
To provide continuous value through their products that will add verve to their
customers‟ life by making goods that are innovative, qualitatively par excellence and
capable of providing an amazing level of customer satisfaction. Helping their
customers get more out of life.
Company’s Vision
They keep their vision targeted at their mission and work with great passion in
achieving their prime objective of giving the customer more of life!
To achieve their aim, they are dedicated to continuously innovating in

technological inputs, service levels, creative marketing, pricing and cost efficiency.

Culture of company
 Openness and flexibility in working style.
 Open door policy means senior executives are approachable at any time i.e.
walk-the talk approach.

 Lot of freedom and autonomy in work.
 Congenial environment for young professional to experiment new ideas.
 Positive and purposeful interaction at all level.
 Easy accessibility of information. Free flow of communication.
 Result oriented attitude is the order of the day.
 Employee growth is performance based.
 Environment of Continuous Learning.

Organisation Structure
Managing
director
Commerci
Factory Genral Accounts Logistic
al
Manager Manager Manager Manager
Manager
Excise
Commerci Officer H.R Security Civil Accounts Assistatn Transport
al Officer Manager Officer Engineer Officer Manager Incharge
Assistatns/
Assistants H.R Security Accounts
Assistants Supervisor Assistatns helpers/dri
Officer Supervisor Assistants
vers
Security
Assistants Helpers
Gaurds
Genral
Manager
Manager Manager
Manager Manager Manager Manager Manager Manager Manager Manager
Instrumen Mechanic
Packing Refinery QC/LAB System Vanspati Store Purchase Electrical
t al
Packing
Technicia Assistants Purchase Electricia
Engineers Superviso Operators Chemists Operators Assistants
ns Officer ns
r
Jr.
Techinicia Packing Jr.
Helpers Helpers Helpers Assistnats Electricia
ns Operators Chemists
n
Helpers Helpers Helpers

1.2. INTRODUCTION
About the groundnut
India is the Second largest producer of groundnuts in the world. Indian
groundnuts are available in different varieties: Bolds or Runners, Java or Spanish and
have a rich nutty flavour, sweet taste, crunchy texture and a relatively longer shelf
life. Groundnuts in India are available throughout the year due to a two-crop cycle
harvested in March and October. On an average, India produces 7-8 million tonnes of
groundnuts every year. In fact, considering the current export figures, India has a
much larger potential to supply high quality groundnuts to the international buyer.
Groundnuts are a high value crop that can be marketed with little processing
and can be used in a wide range of products. They are the second largest source of
vegetable oil, the largest being Soya beans. The oil can be used for cooking, they can
be used as a base for confectioneries and they can be used to make groundnut butter.

1.3. INDUSTRY
China leads in production of groundnuts having a share of about 32.95% of overall

world production, followed by India (18%) and the United States of America (6.8).
Series 1
16
14
12
million matric ton
10
8
6
4 Series 1
2
0
Country Name
COUNTRY WISE PRODUCTION
This figure is according to the Agricultural and Processed food products Exporting
Development Authority (APEDA).

Produc t Wise Export

Qty in MT. Value in Rs. Lakhs
Product: GROUNDNUTS
2006-2007 2007-2008 2008-09
Product Qty Value Qty Value Qty Value
Ground-nuts
152,560 48,318 228,587 90,014 289,879 117,110
HPS Kernels
Other Ground-
nuts HPS not
of seed quality
26,644 8,346 15,787 5,805 3,189 4,880
in shell not
roasted or
cooked
Other Ground-
nuts HPS 37,612 11,961 11,147 4,174 3,248 1,417
kernels
Ground-nuts
HPS of seed
quality in shell 2,677 934 2,088 762 1,034 332
not roasted or
cooked
Other
Groundnuts in
31,858 10,262 11,977 4,650 536 159
sell bot roasted
or cooked
Other Ground-
nuts of seed 76.35 21.46 0.50 0.09 1.7 0.3
quality
Total 251,428.35 79,846.46 269,587.50 105,407.09 297,890.7 123,900.93

This above Export figure shows that the demand of the Groundnut is increasing year
by year.
1.4 LITERATURE REVIEW
History of groundnut
It has been reported that South America was the place, from where cultivation
of Groundnut originated and spread in Brazil, Southern Bolivia and North-western
Argentina. Groundnut was introduced by the Portuguese from Brazil to West Africa
and then to South-western India in the 16th century. Groundnut is famous by
Mongphali in India. The groundnut belongs to the pea and bean family and is a
leguma but is considered as nut because of its high nutrition value.
Types of Groundnut
HPS (hand pick seed) is the main type of groundnut and in that there are two types of
groundnut:
(1) JAVA
(2) BOLD
Amongst these types of peanut JAVA is very famous. In every Groundnut
there are three part of it (a) Husk (b) kernel (c) chilka. It is very beneficial that
every part of the groundnut is used and there is not a single part of groundnut
which is of no use for the owner.

JAVA TYPE
Groundnuts of Java type are of light red color. They are little bit shinning.
These types of groundnuts are cultivated twice in a year (September- December and
May- June). These types of groundnuts hold one condition that if we purchase 20 kg
of shell, then 15 kg of groundnut must be there in 20 kg. If this condition is not
satisfied then we have to cut the payment of that much amount from the balance
payment. Java is exported 90% of the total production and remaining 10% is
consumed in India. 10% java type groundnut is consumed in Seed. Java type
groundnut is famous due to its more calories, protein and having the big proportion of
oil.
JAVA TYPE GROUNDNUT

BOLD TYPE
The pods are larger than those of the Java types and constriction is more well-
defined. The shell is thicker than that of Java types. The kernels are oval, larger than
those of the Java types and covered with light red-coloured skins which speedily
darken. Bold type groundnut is cultivated twice in a year (September- December and
May- June). In Bold type groundnut there is one condition is that if we purchase 20 kg
of shell then in that 14.5 kg of groundnut must be there if this condition is not
satisfied then we have to cut the payment of that much amount from the balance
payment. Out of the total production 60% of bold type groundnut is exported while
remaining 40% is consumed in India which is mainly used as Roasted groundnut.
Bold type groundnut is directly consumed in eating as it is good in taste.
BOLD TYPE GROUNDNUT

Uses of Groundnut
1) Mainly groundnuts are consumed in three ways i.e. Roasted groundnut,
Groundnut oil and Groundnut butter.
2) Java is mainly exported because it contains maximum quantity of the oil.
3) Bold is mainly consumed in the local market of country in different things like in
chikki, bhujiya, chevda etc. it is seen that bold groundnuts are very tasty.
4) The groundnuts are consumed in many ways and various forms. They may be
eaten raw, boiled, steamed or roasted. They are sometimes eaten as a sweetmeat
by coating them with sugar. In Western countries, they form an important
constituent of confections. They are used in nut chocolates, candies and
sandwiches.
5) A large number of food products are prepared from the groundnuts. The
groundnut flour is becoming increasingly popular in the Western country. It is by
far superior to wheat flour in nutritive value. Groundnuts may be used for
preparing nutritive and tasty milk. About one pound of lightly roasted nuts may be
soaked in water for about two hours. The skin of the nuts should be removed by
rubbing in water. The soaked nuts are made into a fine paste in a stone grinder.
The paste is mixed with water to the quantity of three times the bulk of the paste.
It should be strained through a thin cloth before use. The milk may be boiled
without loss of its food value. Sugar may be added to taste. In food value and
composition. The groundnut milk is similar to dairy milk and may be used as its
substitute.
6) The groundnut milk may be converted into curd. A small quantity of the cow milk
curd may be added to the milk and allowed to remain overnight to set. It tastes
like milk curd and possesses much of its qualities.
7) Groundnuts are often used as vegetables when the seeds are still tender. They may
also be taken in their germinated form. Germination not only renders the more
digestible. But also enhances their food value, especially in their vitamin B and C
contents.

Benefits of Groundnut
Nutrition Benefits of Eating Groundnuts are:
1) Groundnuts and groundnut products are very beneficial in the treatment of

hemophilia and other such inherited blood disorders. People suffering from
nose bleeding also benefit from eating groundnuts and it is also helpful in
reducing excessive menstruation bleeding in women.
2) Five main nutrients required by the body to maintain and repair the tissues
namely food energy, protein, phosphorous, thiamin and niacin. These five
nutrients are found in good quantity in groundnuts.
3) Groundnuts are rich vitamins and contain at least 13 different types of

vitamins that include Vitamin A, B, C and E. along with this, groundnuts are
also rich in 26 essential minerals like calcium, iron, zinc, boron, etc. these
help in brain function and development and also help to maintain strong
bones.
4) It is recommended that growing children, expecting women and nursing

mothers consume roasted groundnuts with jaggery and goat‟s milk. It is said
to provide resistance and immunity against dangerous infections like
Hepatitis and also Tuberculosis.
5) Groundnuts are rich in anti-oxidants and a chemical called resveratrol. These
help in reducing the risk of contracting cardiovascular diseases, cancer risk
and also help in anti-ageing, thus keeping the body young and fit.

Given here is the value of different nutrition in 100 grams of Groundnut.
 Calcium - 93 mg
 Carbohydrate - 16.13 gm
 Copper - 11.44 mg
 Fat - 49.24 gm
 Fibre - 8.5 gm
 Iron - 4.58 mg
 Magnesium - 168 mg
 Manganese - 1.934 mg
 Phosphorus - 376 mg
 Potassium - 705 mg
 Protein - 25.80 gm
 Sodium - 18 mg
 Water - 6.50 gm
 Zinc - 3.27 mg
Places where groundnuts are cultivated:
JAVA groundnut is cultivated mostly in the states like Gujarat, Maharashtra and West
Bengal. BOLD groundnut is cultivated in Gujarat and Rajasthan.
Major trading centres of groundnut and derivatives in India are:-
 Kutch (Gujarat)
 Rajkot (Gujarat)
 Ahmedabad (Gujarat)
 Gondal (Gujarat)
 Junagadh (Gujarat)
 Mumbai (Maharashtra)

2. METHODOLOGY
As Company maintains good relations with the other producers of groundnut

processing Plants in Gujarat. So, company gave us chance to visit some plants. We
have visited the plant of Madhav Seed Industries (Jamnagar), Tanna Agro Impex Pvt
Ltd (Jamnagar) and Kanaiya Enterprise (Anjar).
Madhav Seed Industries:

Madhav Seed Industries has Groundnut processing plant in Jamnagar. There
we met the manager of Madhav Seed Industries, Mr. Rajubhai Sonaiya. They have the
plant of removing kernel from the shell and grading it according to the requirement.
They used to sell the kernel to the exporter who exports the kernel directly to the
foreign countries. Wastage such as unopened shell and husk is also been sold in local
market. The capacity of the plant was 10 tons per day working 12 hours in a day.
They have two machines.
Tanna Agro impex plant:
In Tanna Agro Impex plant, (situated in Jamnagar in Gujarat) is fully equipped

to rollout the quality Groundnuts. They remove the red cover of the kernel, that
groundnut is known as blenched groundnut. This blenched groundnut is totally
exported, especially to Europe. They had the quality certificate from APEDA. They
have to work according to norms and regulation of the European countries. Safety and
cleanliness is given the first Preference to the company. They are having capacity of
10 tons per day working 8 hours in a day.
Kanaiya Enterprises:
Kanaiya Enterprises has Groundnut processing plant in Anjar (Kachchh). They

have the same process as Madhav Seed Industries is having. The capacity of the plant
is 10 tons per day working 12 hours in a day.

As we had seen the process of both Plants, the process of the Madhav Seed
Industries and Kanaiya Enterprise is given in the project and this same process is been
suggested by us to company in this project.
Details of Proposed Project
This project is regarding the feasibility of groundnut. We have done the study
regarding groundnut which include below points:
1) Where to establish the plant.

2) From where to purchase the groundnut.
3) Process of removing the Kernel from that Shell.
4) Process of grading related to the order of the customer
5) Process of packaging the finished goods
6) Loading of the finished goods
7) Process of Blench groundnut (future perspective).

3. ANALYSIS AND INTERPRETATION
Plant Location
The Groundnut market is spreading rapidly, so JMD Oils Pvt. Ltd. wants to
enter in the market. In India, Gujarat is among the largest producer of groundnut, it is
very beneficial to establish the plant in Gujarat. Now in Gujarat, the best quality of
groundnut is mostly cultivated in Kutch and Saurashtra. Groundnuts of Gujarat are
mostly exported to foreign countries. If the company is near to any port, it will be
very beneficial as the transportation cost will be less. In Kutch, there are two ports,
one is Kandla port and another is Mundra port. So, the plant should be established in
Kutch only rather than in Saurashtra. The availability of the raw material is high in
Kutch.
In Kutch, JMD Oils Pvt. Ltd. is already having its plant situated at Bhimasar
village. The benefit of this location is that it is near to port, the railway station is just
opposite to its gate. One more benefit is of easy availability of labour from Bhimasar
village.
Raw Material
1. It can be directly purchased from farmers.

2. It can be purchased from mediators (Agents).
3. It can be purchased through market yard.
If raw material is purchased from farmers, then it will cheaper than mediator
because he takes 1% commission from purchaser. Broker makes adulteration into the
material which causes loss for the company.

Rates of Groundnut
These rates are taken on the basis of current market price. Here are selling
price of the kernel:
JAVA
Rs.51.00/KG (40-50 condition)
BOLD
Rs.49/KG (40-50 condition)
Condition satisfaction procedure
We have to take the weight of 28.5 gm and count the number of kernels in it.
We can obtain the quality of the kernel through this way. At the time of purchase and
sales, also one condition of moisture in it, but we do not consider that thing because it
is totally based on nature.

We have done our whole study of the kernel 40-50. Because this type of
groundnut has high demand in market.
Process of remove the kernel through machine

After purchasing the raw material the kernel is removed from shell through the
huller machine:
HULLER MACHINE

First of all when raw material is introduced in the plant following process starts:
The shell comes into this machine
Husk (shell cover) are thrown out by the machine
Three things comes out from the machine

a. Kernel
b. Small Kernel
c. Dust particles and unopened kernel
Peanut is filled in bags for manual checking.
Bags are taken for manually checking.
Kernel are separated from any stone left, unopened shell in those
Bags. This work is mostly done by the labours.
Clean kernel are put into another machine which do grading

according to the requirement of the customer.

GRADING MACHINE
This is grading machine which separates the kernel according to the sizes.

THE PROCESS OF GRADING TO THE FINISHED GOODS
Small stones and dust are again separated from peanut

manually.
Peanut is transferred to grading machine.
Setting of grading machine as per requirement.
Packed in bags of 50 kg.
Transportation.

Possibility of Wastage
There is a possibility of 37 % wastage of input (shell) which include dust, stones and
unopened shell.
Process of Tanna Agro Impex Pvt.Ltd.
Tanna Agro Impex Pvt. Ltd. is doing the business of more than one commodity.
We had visited the plant of blench groundnut. Blench groundnut Plant process is
given below:
1) Purchase the kernel from local market (java type).
2) Kernel is roasted at 95 degree Celsius for 15-17 minutes.
3) After that Material is process into cooling machine for 10-15 minutes.
4) Then material process in the blencher which throws the red cover of the
groundnut.
5) Materials are packed into the bags of 7kg, 10kg and 50kg according to the
order of customer.
There are of 15-20% wastage due to split (two part) of blench groundnut since
it is not accepted by the purchaser.

Financial Analysis
Materials and Inputs
Raw and Auxiliary Materials:
The principal raw material required by the Groundnut plant is shell (pod), which is
produced locally in Kutch and Saurashtra in Gujarat. During the process of removal of
kernels from the shell there is the weight loss of 30% of the input. Therefore, taking
this weight loss into account, the annual requirement for groundnut shell at 100 per
cent capacity utilization rate is estimated to be (20 tonnes per day working 350 days
in a year) 7,000 tones +wastage(0.3694 x 11,100 tonnes) = 11,100 tonnes shell.
Annual cost of shell at the rate of Rs.32 per kg will amount to Rs. 3,552 lakhs.
After getting the Groundnut from the shell it is graded as per the order given by the
customer and after that it is packed into the bag of 50kg capacity. The requirement
and the cost of the bag is Rs. 42 lakhs the calculation for the same is given below.
Total annual
Sr. No. Item Quantity ( In Value (Rs. In Source
tonnes) Lakhs)
1 Shell 11,100 3,552 Directly

Rs. 32/kg purchase, agent
through,
market yard
2 Bags (50 kg) 1,40,000 No. 42 From local
Rs.30/bag market
TOTAL 3,594

Production Programme:
The annual production programme is formulated on the basis of the market forecast
and selected plant capacity. It is assumed that the plant will achieve 100% capacity in
the first year itself. This Calculation is for 40/50 groundnut.
Sr. No. Product Total Qty. SP Per Sales Capacity

per year Kg (in Revenue (Rs. Utilization
(in tons) Rs.) in Lakhs)
1 Groundnut 7,000 51 3,570 100%
2 Husk (by 3,000 1.8 54
product)
3 Unopened 1,100 40 440
shell
TOTAL 11,100 4,064
Source of Plant and Machinery:

The machinery and equipment required for groundnut production could be obtained
from the following companies:
1) JAY SHAKTI ENTERPRIES
ATKOT ROAD,
NEAR NEW BUS STAND
JASDAN :- 360050
Ph :- 02821 – 220182
Mo :- 098244 1148
2). UNISOFT PHERIPHERIALS
3, SHREYAS ANAND COMPLEX, 1ST FLOORT,
ASHRAM ROAD, NR. KUVADAVA ROAD,
RAJKOT, GUJARAT 360003

Machinery and Equipment:
The total cost of machinery and equipment is estimated at Rs.4,78,500. Detailed list
of machinery and equipment is given in below Table.
Sr no. Machinery No Amount (Rs.)

1 Huller machine (decorticator) 2 3,68,000
(capacity-10 tons)
2 Grading machine(capacity-10 tons) 2 98,000
3 Weight machine 1 12,500
TOTAL 4,78,500
Utilities:
The major utilities required by the plant are electricity. Annual electric
consumption of the plant and their estimated cost, at 100 per cent capacity utilization
rate is indicated in Table. The total annual cost of utilities is estimated at
Rs.11,30,960.
Sr. no Particulars Annual Total Annual Remarks

Requirement Expenses
1 Electricity 2,01,600 units 11,28,960
(rate-5.60)
2 Oiling 2,000 It is outsource
to the party
TOTAL 11,30,960
Total HP (hoursepower) is required by the machine is 24HP and in one hour there are
requirement of 24 units of electricity in a day 576 units So, total requirement of the
electricity are 2,01,600 units (working 350 days in a year).

Man power Analysis:
Company can work in two shifts and requirement regarding the manpower is
given below. In this industry, usually male workers are paid fixed salary while female
workers are paid on the basis of total tonnes of output of their work. But in our
project, it will depend on the company‟s structure of payment.
The groundnut plant will create job opportunities for 46 persons. The factory will
be in the compound of JMD Oils Pvt. Ltd. near Bhimasar. So, it is easy to get worker
from the place it is also near to the Gandhidham and Bhachau. The detailed
manpower requirement and the estimated annual labour cost is given in the table. The
total cost of manpower is estimated Rs.41,98,000.
Sr. No. Description Req. Monthly Salary Annual Salary

(INR)
No. (INR)
1 Quality Controller 1 20,000 2,40,000
2 Production Supervisor 2 12,500 3,00,000
3 Machine Operators 4 9,000 4,32,000
5 Purchaser Manager 1 20,500 2,46,000
6 Labour (male) 16 7,500 14,40,000
6 Labour (female) 22 Per bag 11 Rs 15,40,000
TOTAL 46 41,98,000

Transportation cost:
This cost is paid as per the agreement is taken place between two party.
Cost of the project
Fixed Capital
S no Item Value (Rs. In lakhs)

1 Land and Building 12.45
2 Machinery 4.78
3 Furniture & Fixture 0.50
Total 17.73
Land required is 743 square meters @ rate of 330/sq.mt and construction of building
is taken 10,00,000.
Working Capital
Sr. No. Item Duration Quantity (in Value (Rs)

tone)
1 Raw Material stock 7 days 222 71,04,000
2 One month production 4,52,415
expenses (Utilities+ wages+
Salaries)
TOTAL 75,56,415

Total Cost of project

Sr. No. Particular Value (Rs.)
1 Fixed capital 17,73,190
2 Working capital 75,76,415
3 Preliminary and pre- 50,000
operative expenses
Total 93,99,335
Means of Finance
Sr. No. Particular Value (Rs) Remarks

1 Term Loan NIL NIL
2 Own investment 93,99,335 NIL
3 Subsidy NIL NIL

Project Profitability Analysis
Sr. No. Description Value (Rs.)

1 Sales Revenue 40,64,00,000
2 Manufacturing expenses 36,47,28,960
3 Selling & Distribution expenses ( per ton Rs. 7,00,000
100)
4 Administrative expenses NIL
5 Interest NIL
6 Depreciation 2,63,480
7 Gross profit 4,07,07,560
8 Income tax @ 34% 1,38,40,570
9 Net profit 2,68,66,990
Now,
Gross Profit = Gross Profit/ sales
= (4,09,71,040/40,64,00,000) *100
= 10.09%
Net Profit = (4,07,07,560/40,64,00,000)*100
= 10.01%

SWOT Analysis for the Company
As we have studied all the parts for establishing Plant. Now, SWOT Analysis for
company establishing the groundnut plant is as follows:
Strength
Weakness
1) Company has good brand value in
1) First time enter into this
north india.
commodities.
2) Company has the good experience
in commodity market.
SWOT analysis
Opportunity
1) Chances of getting new market
for the organization.
Threat
2) Company has good location near
1)Threat of natural environment.
to the railway station and port.
2) Threat of government policies.
3) Company has good employees
relationship in the organation

4. FINDINGS
Place: We have found that JMD Oils Pvt. Ltd. is having the plant in Bhimasar
and have the sufficient land which can be efficiently utilised for groundnut processing
plant.
Product: Company has the opportunity to launch new products of groundnut

like roasted peanut and peanut butter. Indian market is adopting foreign trends, their
taste and preferences will attract towards peanut butter since, peanut butter is utilised
mostly in foreign countries.
By product: JMD Oils Pvt. Ltd. is already having the boiler and refinery plant.
There are requirement of coal and fuel for burners. But, husk of groundnut can be
utilised as burner. It helps in cost reduction.

5. FUTURE SCOPE
Company can also launch groundnut butter (known as peanut butter), roasted
groundnut and Blench groundnut. The Scope of roasted groundnut is wide in India.
Company can also sell to the local dealer by making its own brand in the market.
Scope of groundnut butter is wide in foreign market especially in US market.
Company can also directly export all products to the foreign countries.

6. CONCLUSION
After analysing all the technical and financial data of the groundnut plant, it is
observed that it is very beneficial for the company to establish the plant in JMD
complex. By doing this, company can have a different lines of product. Looking at
scenario, Groundnut commodity sector is booming in India and even Gujarat is
having the biggest market and producer of Groundnut. Highest export of groundnut is
through Gujarat in India. In this plant, investment is less but profit is high. So,
through the study we can conclude that company should establish the groundnut plant
in their premises only.

BIBLIOGRAPHY
Websites:
www.unisoftpheripherals.com
www.apeda.org
www.best-home-remedies.com/herbal_medicine/nuts_seeds/groundnut.htm
www.infobanc.com

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FEASIBILITY ANALYSIS OF SETTING UP A GROUNDNUT PLANT

FEASIBILITY ANALYSIS OF SETTING UP A GROUNDNUT

A PROJECT REPORT Submitted by

VIKRAM DUTT (09009)

MAYUR THACKER (09107)

Tolani Institute of Management Studies

TOLANI INSTITUTE OF MANAGEMENT STUDIES 0

Through this acknowledgement we express our sincere gratitude towards all

TOLANI INSTITUTE OF MANAGEMENT STUDIES 1

We hereby declare that the Project work entitled Feasibility Analysis of

Vikram Dutt _______________________

Mayur Thacker _______________________

TOLANI INSTITUTE OF MANAGEMENT STUDIES 2

NO TITLE PAGE NO.

TOLANI INSTITUTE OF MANAGEMENT STUDIES 3

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Sr. No. Table Title Page No.

Short form Full Form

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Objectives of the Study

1) To analyse the market Technical and Financial Feasibility.

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1.1 About the company

JMD OILS PVT. LTD

Name of the company: JMD Oils Pvt. Ltd.

Constitution : A Closely held Private Limited Company

Name of Directors : Sh. Krishan Dhingra

Sh. Naresh Dhingra

Sh. Ramji Lal Sharma

Nature of Business : Manufacturing of edible oils and Ghee, Sugar, Salt.

TOLANI INSTITUTE OF MANAGEMENT STUDIES 7

History of JMD Oils Pvt. Ltd

Meanwhile the group diversified into the business of manufacturing and

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It had been outsourcing the manufacturing/refining of edible oils and dairy

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To achieve their aim, they are dedicated to continuously innovating in

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 Openness and flexibility in working style.

walk-the talk approach.

 Congenial environment for young professional to experiment new ideas.

 Positive and purposeful interaction at all level.

 Easy accessibility of information. Free flow of communication.

 Result oriented attitude is the order of the day.

 Employee growth is performance based.

 Environment of Continuous Learning.

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Helpers Helpers Helpers

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China leads in production of groundnuts having a share of about 32.95% of overall

COUNTRY WISE PRODUCTION

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Produc t Wise Export

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1.4 LITERATURE REVIEW

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JAVA TYPE GROUNDNUT

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BOLD TYPE GROUNDNUT

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Nutrition Benefits of Eating Groundnuts are: