setting up wheat milling plant uae
TRANSCRIPT
Feasibility study-Wheat Milling plant
Date- 6th Oct2013
Devpriya Sarvepalli
Sourcing of Wheat Wheat can be sourced from Australia, North
America, Black Seas, India, Russia, Kazhakistan etc. Wheat price depends on the quality of seeds. And
quality is determined by protein content, Higher the protein content, higher the price The commodity price can be monitored at global
indexes eg. Australian wheat board (AWB) The price depends on demand and supply Other factors which influence the prices are
exchange rate, weather conditions, gold and oil prices
The best sourcing option is to tie up with big commodity houses like Louis Dryfus, Cargill, Olam International, who will procure directly from the farmer and sell it
Current Market price of wheat Highest quality wheat will have 16.5% or
more protein French wheat is considered as lowest
quality wheat with protein content of 9-10% Current Market rate of wheat-Protein content (11.5-12%)- 300$/tProtein content (9-10%)- 250$/t
About the Machinery Buhler is the most popular supplier, but the prices are
almost double compared to other suppliers Other suppliers are from Turkey and China There is no much difference between the machineries of
Buhler and other suppliers The average life of Buhler can go upto 40-50 years while
Chinese Machinery will work upto 20 years only Maintenance also is higher in Chinese and Turkish
Machineries Plant capacity is 300T/Day ie. 300T of wheat seeds per
day. Plant is divided into different lines Machine will work all the 3 shifts- 24hrs for 6 days a
week.
Maintenance Three types of maintenance-a. Preventive maintenance- weekly onceb. Overhaul- Annual Maintenace- mostly
during chritsmas holidays (takes 3-5 working days)
c. Repairs- every line manager will try to reduce this as much as possible
Timeline to set up the facility Actual project may take 1yr-1.5 yrs
depending on the influence of the client
The practice is that once advance money is paid to the supplier of machineries, then the real work starts at the supplier’s end
Pre requisites Key factor is accessiblity to silos, near to
port Labour supply Continuous sourcing of wheat seeds
Different stages in milling
Cleaning
Conditioning
Gristling
Milling
Sifting and Packaging
Extraction Rate The extraction rate of the product depends on
the protein content of wheat More protein content, better extraction rate Typically extraction rate varies between 75-
80%. Extraction rate also depends on miller’s capability
Rest 20-25% of the byproducts will contain Bran (22%) and other impurities (3%)
Bran is very useful byproduct which is used by feed industry
Per hr output would be around 12.5T (300T/24HRS= 12.5 t/Hr)
About the product Flour grade depends on the combination of 3 factors-
Protein+ash content+granulation Ash content refers to the presence of Bran, lower ash
content-whiter flour, more ash content- brownish flour When 100% of wheat seeds are milled, it gives chapati
atta If outer skin is separated, then the flour will have lower
ash content and the resulting byproduct will be Bran Custom made flour is made as per the client’s order by
considering 3 factors-protein content, ash content and granulation
Continue… Low protein flours are cheaper and so in
high demand But milling of both high and low quality
wheat is necessary so as to get correct combination
The process of mixing both high and low quality wheat can be done in 2 ways-
a. Mix wheat seed before millingb. Mix wheat flour after milling in specific
combination to get desired consistency
Packaging Two types of packaging-a. Business users (B2B)- 50 Kgs bag. Very
plain package. It costs around 0.4-0.5% of total product of tocost
b. Retail customers (B2C)- 5kgs, 2kgs and 1 kg bag. Package is attractive, and re-sealable bags. It costs around 2-2.5% of total product cost
Storage The silos capacity is 150,000T On an average twice in a month loaded
ships of wheat arrives at these silos Wheat seeds can be stored at room
temerature for 2-4 months and it should be circulated once every 2 months
The final products are normally not stored beyond 2 weeks. So, storage room is not necessary for final products.
Controlled temperature of 20-25 C is needed to store flour.
Certification QA team at the silos continuously testing the
products Government authority inspects incoming
material For final product, municipality will do some
surprise visit once in a while R&D team will test the final product every time
Waste management Biggest byproduct is bran which goes to
animal feed mill Rest all other wates are disposed in
environmentally phased manner
Market Information Local market constitues 95% share, only 5%
is exported to other countries There is no specific country for export. Only standard product offerrings are
exported (no customozation for export) Local market complete customized products Most of the customers are bakers,
conectioners and catering houses, agents Now ventured into retail segment as well –
Carrefour, lulu etc.
Manpower Requirement Operational levelIf machine is basic equipment-then 3 categories of labour needed-a. Skilled labour- they are called supervisor or line
supervisor. They do planning, organizing and directing the team
b. Semi skilled- maintenance, preventive manitenance work, managing silos etc.
c. Unskilled – baggaing, cleaning the mill etcIf machine is highly automatic, then only skilled labours are needed Thumb rule is for every100T-15 labours are needed out of which 10% supervisor (skilled), 25% semiskilled and rest can be unskilled labours
Continue… Equation goes like this 1st 100T- 15 Labours2nd 100T- 12 Labours3rd 100T- 10 Labours
So maximum 40 labours are needed to run a 300T/Day plant capacity. Out of which4- Skilled labour10-semiskilled26- unskilled
Organizational structure
Plant Manager
Production Team
Labours R & D Analyst
Supply chain Team
Warehouse Procurement
Market analyst Distribution
Finance Team
Sales and Marketing Team
Total Manpower requirementDesignation Number Salary per month
Plant Manager 1 30,000
Supply chain manager 1
Procurement 2
Technical analyst 1
Plant Supervisor 4
Semi skilled labours 10 2000x10= 20,000
Unskilled labours 25
Maintenace Team 2
R & D analyst 3
Sales and Marketing 4
QA team 3
Warehouse manager 1
Distribution team 10
Other cost Major cost –A. Wheat seedsB. Labour All other costs are 9% of total
manufacturing cost*Please refer to the excel for detail cost analysis
Thank You