Modernization and expansion of an existing rice mill for Pandateruppu Multi-Purpose
Corporative Society Ltd.

Pandateruppu Multi-Purpose Corporative Society Ltd (MPCS) is a successfully operating
corporative society in the Valikamam South West area of the Jaffna district. It is an award
winning MPCS, consistently topping the MPCS charts; in Jaffna area. The Pandateruppu MPCS
has a number of business ventures within their remit, which includes a rice mill. The MPCS was
planning to increase its rice mill current capacity of 35 metric tonnes of rice production to 50
metric tonnes per month. Furthermore, the rice machinery at Pandaterrupu MPCS had been
decades old, seriously compromising on the quality of the production. The capacity increase and
modernisation of the rice mill operation is deemed critical for the subsistence of the MPCS
operation, which is struggling to generate adequate cash flow from its current operations. In this
regard, Tech Ceylon studied the situation and drafted a project proposal to the cost of 49.5 Sri
Lankan Rupees. 14 direct and indirect jobs were estimated to be created at the completion of
the project. The Government Agent, Jaffna has already accepted the proposal and allocated the
requested amount by Tech Ceylon.

Modernization and capacity increase of an existing rice mill for Uduppiddy Multi-Purpose
Cooperative Society Ltd.

The Udupiddy Multi-Purpose Cooperative Society (MPCS) Ltd. is the first co-operative in Jaffna to
start a rice production facility. The facility has been in continuous operation for the last 37 years,
also through the war years. With its vast experience in rice production, the MPCS is planning to
double its current capacity of 200 metric tonnes of rice produced per year. This capacity increase
is deemed critical for the survival of the MPCS, which is struggling to generate adequate cash
flow for its operations. Tech Ceylon Social Ventures was tasked to do a project study to increase
the capacity of the rice mill. The proposed capacity increase was based on the market
opportunity available, by the sale of the additionally produced rice on to the other cooperatives,
in the Vadamarachchi area, and also to the private sector. Process bottlenecks in the current
plant had been identified by Tech Ceylon for the planned capacity increase, and a number of
machines were proposed to be introduced. Moreover, modern equipment, such as a colour
sorter and a rice grader, were introduced to improve the quality of the product, so that it would
be competitive with the rice produced by private parties. The total project cost was Rs. 67 lakhs.

15 jobs were expected to be created via the project. The Government Agent, Jaffna has accepted
the Tech Ceylon proposal and has already released the funds to set the project in motion.

Process upgrade of JACHUFI fruit-based industry for Chunnakam Multi-Purpose Cooperative
Society Ltd.

The Chunnakam Multi-Purpose Cooperative Society (MPCS) Ltd. has a fruit-based food and
beverages factory, called JACHUFI, which is a unique initiative among the co-operatives in the
North. The region is renowned for its fruits, such as mangos, and the factory’s business
proposition capitalizes on this point-of- difference. By converting the abundantly available fruits
in the peak harvest season into value added products, the off-peak season demand and logistics
challenges are solved. The factory currently produces various types of cordials, fruit drinks, and
jams from a number of fruits. Successive funding from ACF, the French government, and the
UNDP have helped the unit to become a successful venture over the years, and its products are
gaining in reputation in the Jaffna district and also in the North. Furthermore, a limited amount
of its production is also being sold through private traders in the rest of the country.
To cater to the increasing demand of its products, created via its growing reputation, JACHUFI
plans to enter into a vigorous expansion agenda over the next few years. The next capacity
expansion is expected to take the JACHUFI products to other parts of the country, including the
South. In this regard, the market studies conducted have indicated that some form of quality
certification from the Sri Lanka Standards Institute (SLSI) will help. Therefore, the factory aims to
obtain the Good Manufacturing Practice (GMP) and Sri Lanka Standards (SLS) certifications of
SLSI. Specific hygienic and production quality standards are to be satisfied for these
certifications. At the end of this process, the production capacity is projected to gain by 50%.
This will push the current production shifts made per day from 2 to 3.

Tech Ceylon Social Ventures carried out a project study to identify the quality deficiencies in the
current production processes, and recommended a number of machines to be introduced. A
number of manual tasks, leading to contamination, were proposed to be mechanized. Moreover,
as the Jaffna water is alkaline, a water treatment plant was endorsed to be incorporated to
improve the quality of all products.The cost of the project is Rs. 49 lakhs. The expected number
of job increases is 10. Additionally 10 more farmers will become beneficiaries of their registered
supplier scheme. The Government Agent, Jaffna has accepted the project proposal submitted by
Tech Ceylon, and will be releasing the amount requested.

Expansion of an existing food packaging centre for Neerveli Multi-Purpose Cooperative Society
Ltd.

In Jaffna peninsula, among the other trade-hubs, the Multi-Purpose Corporative Society Ltd.
(hereinafter MPCS) is a successfully operating corporative setup. The Neerveli MPCS has been
effectively running its grinding and packing facilities over past 37 years. The MPCS requested
Tech Ceylon to conduct a project proposal study to expand the operations of the grinding and
packaging setup. In turn, Tech Ceylon studied the operations and technologies, and proposed to
enhance the grinding and packaging facility of the MPCS with new technologies such as
automated and manual machineries, while offering and optimizing the employment
opportunities for packaged products. Certain level of addition and alteration of infrastructural
development were also included in the proposal. The proposed equipment/machinery sets

encompass a few number of grinding and packaging machines which are expected to be
procured, both in local and overseas, for the cost of 3.54 million Sri Lankan rupees
approximately. Whereas the proposed addition and alteration of infrastructure facility for the
development is estimated as 4.42 million Sri Lankan rupees. The overall cost of the proposal will
be 7.96 million Sri Lankan rupees.The total cost is Rs. 80 lakhs. 25 people are expected to gain
employment via this process upgrade. The Government Agent, Jaffna has accepted the project
proposal submitted by Tech Ceylon, and has sanctioned the release of funds toward the project.

Tech Ceylon submitted the proposals for the following projects to the Government Agent (GA), Jaffna.
The GA has accepted the proposals and has agreed to allocate the requested amount.