Business Opportunities in India-s Maize Sector



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

 

For India, maize is significant because 15 million Indian farmers grow maize. Maize is a promising crop for doubling farmers' revenue, having realized Maize's potential for producing greater income to farmers while offering profitable employment. The Maize value chain in the country has enormous growth potential. In the last five years, maize consumption has climbed by 11% at CAGR. Nowadays, Maize provides more than 3500 specialty maize products such as the 'Quality Protein Maize' QPM. These movements open substantial opportunities for the maize industry in India.

 

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Indian Maize Agri-Business Scenario

 

In the Indian context, not less than 15 million farmers cultivate maize, which produces jobs at farming levels and links business eco systems for more than 650 million people a day. More than 2% of the production value of all crops is mostly contributed by maize. It is a 'C4' and 'day-neutral crop which produces a larger yield per hectare over a shorter period and can be cultivated at any time of the year.

 

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The crop is less water-efficient than other similar crops. The many maize utilities like 'food,' 'fodder' and 'feed' make it easier to demand and insulate against situations with low demand.

These particular qualities of maize make the crop a potential crop choice for boosting farmer’s income and livelihoods in India.

 

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The demand of Maize Business in India and Support by FICCI

 


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Considering the demand, the utilization of maize grew by 2% over the previous year to 24 Mn of MT in 2016-17. The cumulative demand includes 13.5 Mn MT of poultry food, 1.8 Mn MT of starch, 1.2 Mn MT of ethanol, and a balance of food, seed, and other applications. More specifically, maize growers can enjoy tremendous opportunities in the feed sector rising at the CAGR of 6-7% globally and CAGR of 9% in India. India would require 45 Mn MT of Maize by the year 2022 to satisfy its domestic consumption requirements alone.

 

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

 

FICCI has developed Maize Vision 2022, a strategy that involves a backward and future linkage to bring about the paradigm shift in the crop sector, to meet the desired demand levels and increase farmer income. These strategies were established in line with the opportunities and future considerations across the corn value chain. The actors in the corn value chain, which play an important role in the return and forward link chains, are effectively handled through Maize Vision 2022.

 

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

 

Opportunities in Different Fields

 

The increased use of maize for feed and industrial applications, especially for poultry feed and starch, has provided considerable support to demand, and lateral investment options have also been opened up by establishing maize processing infrastructures. In the scenario, the portfolio for Indian maize starch can be expanded, the percentage recovery from crops can be improved and beverages and biofuel consumption may be increased. The supportive policy and investment climate for these projects would surely provide Maize processing and value-added industries a major boost.

 

 

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

 

Conclusion

 

In total, the maize-based industry, which is mainly attributable to the private sector, has risen considerably, as opposed to traditional crops such as paddy and wheat. Successful implementation of the maize vision 2022 is of fundamental importance to deliver a major boost to the sector. A viable policy framework with closer stakeholder commitments across the entire value chain would be critical and stimulate the fast-growing crops with a vital boost for the agricultural sector as a whole.

 

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To realize the potential of maize as the "future crop of cereals," strategies and measures must be merged to promote technological breakthroughs, promote aggregation and linkages between producers, enable infrastructures to support, abandon PPP relations and facilitate various policy measures.

 

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NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. Its various services are: Pre-feasibility study, New Project Identification, Project Feasibility and Market Study, Identification of Profitable Industrial Project Opportunities, Preparation of Project Profiles / Pre-Investment and Pre-Feasibility Studies, Market Surveys / Studies, Preparation of Techno-Economic Feasibility Reports, Identification and Selection of Plant /Process / Equipment, General Guidance, Technical and Commercial Counseling for setting up new industrial projects. 

 

 

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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

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

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