Is Maize Processing and Manufacturing Business Profitable in India?



Related Projects:- Maize, Corn and its By Products , Derivatives, Maize Processing Industry, Corn Starch, Dextrose, Liquid Glucose, Sorbitol, Oil, Gluten, Germ Oil, Wet Milling, Maize Starch Plant & related Products, High-Fructose Corn Syrup (HFCS)Projects

 

Maize production is essential to India, as it employs 15 million Indian farmers. Maize qualifies as a possible crop for doubling farmer's income due to its ability to generate higher income for farmers while also offering useful work. The maize value chain in the country has enormous potential for expansion. Maize consumption has climbed at an annual rate of 11% during the last five years. Maize is now used to make over 3500 different goods, including specialized maize like QPM (Quality Protein Maize). These trends present new opportunities for India's maize industry.

 

Related Videos:- Maize & Corn Processing Projects - List of Profitable Manufacturing Business Ideas.

 

Overview

Maize, also known as the "Queen of Cereals," is the world's second most important cereal crop in terms of land. In 2016-17, global maize output reached over 1040 million MT, with the United States leading the way with 38 percent, followed by China with 23 percent. With a production volume of 26 million MT in 2016-17, India accounts for about 2% of the global total. Maize production employs around 650 million people in India, with over 15 million farmers involved. Furthermore, maize represents more than 2% of the entire value of agricultural crop output.

 

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Current Scenario

The current maize production scenario shows hybrid maize on 65-70 percent of acreages, with the majority of it being used for feed and industrial purposes, while food-grade maize is grown using traditional cultivars (OPVs). Although the rate of hybrid adoption has slowed in recent years, farmers have continued to replace conventional cultivars/old hybrids with newer, higher-yielding hybrid types. States like Karnataka, Rajasthan, Andhra Pradesh, and Madhya Pradesh account for half of the country's total maize acreage. The aforementioned states, including Bihar, produce about two-thirds of the country's corn.

 

Related Books:- Maize (Corn) Products in India (Starch, Glucose, Dextrose, Sorbitol) Trends, Opportunities, Market Analysis and Forecasts (Upto 2017)

 

However, it is important to note that the national maize productivity is far lower than global standards. India's yield standards are nearly half those of the rest of the world, therefore there is a lot of room for improvement in this strategically vital crop.

On the demand side, maize consumption climbed by 2% over the previous year, reaching 24 million metric tonnes in FY 2016–17. This total demand includes 13.5 million metric tonnes of chicken feed, 1.8 million metric tonnes of starch, 1.2 million metric tonnes of ethanol, and the rest for food, seed, and other uses. The feed sector, which is rising at a CAGR of 6-7 percent globally and 9 percent in India, presents a big potential for maize growers. By 2022, India will require 45 million metric tonnes of maize just to meet domestic consumption needs.

 

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Demand and Future Ahead

The growing use of maize in feed and industry, particularly for poultry feed and starch, has not only boosted demand, but has also opened up new investment opportunities through the creation of maize processing facilities. In this context, there is potential for extending Indian Maize Starch's product line, increasing crop recovery, and growing demand in the beverage and biofuel industries. Supporting such efforts through policy and investment would undoubtedly give the maize processing and value addition industry a considerable boost. When compared to traditional crops, such as corn,

 

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The private sector has primarily contributed to the enormous growth of the paddy and wheat, maize-based industries. Effective execution of Maize Vision 2022 would be critical in providing a considerable boost to the sector. An enabling regulatory environment with broader stakeholder engagement across the value chain would be critical in triggering rapid crop development and providing the required momentum for the agriculture industry as a whole.


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To fully realise maize's potential as "the future cereal crop," a combination of strategies and interventions centred on technological advances, producer aggregation and linkages, supporting infrastructure, foregoing PPP relationships, and facilitating multiple policy initiatives is required.


Book Link: Handbook on Maize (Corn) Processing and Manufacture of Maize Products

 

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Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity

 

Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

 

Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)

 

Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

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·         Rates of the Land

·         Built Up Area

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Project at a Glance

Along with financial details as under:

 

  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital

 

  •    Annexure 1:: Cost of Project and Means of Finance

  •    Annexure 2::  Profitability and Net Cash Accruals

                Revenue/Income/Realisation

                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios

                D.S.C.R

                Earnings Per Share (EPS)

               

             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 

                B.E.P

  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR