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DID MANUFACTURING INVESTMENT OPPORTUNITY PROFILE SUMMARY

PROJECT PROFILE FOR RICE MILL


PRODUCT / [ COST BASIS : QATAR ]
SPECIFICATIONS Length of grain: 4-5 times width for Basmati Rice
Basmati rice has high amylase content and a firm almost dry texture when properly cooked.
The raw kernel is long and slender like southern long grain, but slightly smaller. The kernels
PRODUCT increase in length by more than three times when cooked to produce a very long slender
DESCRIPTION cooked grain.
Rice is used to make biryani, desserts, kheer, pulao etc. The other products are rice bran,
APPLICATION rice bran oil, husk, broken rice, starch straw, beverages, paper and glue.

The demand for all types of rice in Qatar has reached 1106.05 million QR for the year 2006.
MARKET There is an average annual growth rate of 17.9% during the last five year period. The
demand in Qatar and other GCC countries is likely to grow with the rise in immigrant work
force from Asian rice –eating countries and pilgrims coming for Haj and Umara.
Expected Output/Year 12000 MTPA (Metric Tonns Per Annum
PRODUCTION Shifts/Day 2
Operating Days/Year 300
Type Centrifugal Shellar Milling Technoolgy

TECHNOLOGY Paddy Cleaning- Dehsusking-Paddy Separation-Milling-


Description ( Process) Polishing-Grading-Sorting-Weighing-Packing
Sources National Small Industries Corporation (NSIC)
RAW MATERIAL Paddy
Electricity 280 KW/13.40 mn units
UTILITIES
Water 12 KL/Day
Total 21
Skilled Labour 5
MANPOWER Helpers 8
Production 4
Administration 4
Case 1 (50% Equity) Case 2 (100% Equity)
(QR in Thousand)
Total Project Cost 6200.00 6128.00
INVESTMENT Plant & Equipment 2408.00 2408.00
Building & Civil Works 2072.00 2072.00
Pre- Operative Costs 250.00 179.00
Working capital Margin 885.00 884.00
IMPLEMENTATION
PERIOD 7 Months
Case 1 (50% Equity) Case 2 (100% Equity)
Net Profit 998.65 1086.32
Cash Profit 1428.88 1516.55
Profit Margin 4.25% 4.63%
BEP (@ Inst Cap) 54.07% 51.79%
BEP (@ Opt Cap) 67.59% 64.74%
PROFITABILITY
DSCR (Gross) 2.16 NA
DSCR (Net) 2.31 NA
IRR 23.35% 23.69%
NPV (000 QR) 4004.88 4070.59
Pay Back Period 4 Years 3 Months 4 Years 9 Months
ROI 17.32% 18.57%

NOTES: 1. Two cases have been considered in the project profile.


Case 1: 50% Equity 50% Debt
Case 2: 100% Equity
2. Average Sale price - QR 3.61 Per Kg
3. Profitability has been shown for the 3rd year of operations

National Small Industries Corporation Ltd. (NSIC)

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