A comprehensive study was conducted to evaluate the economic viability and value addition of paddy processing enterprises focus on the Shyam Rice Processing Mill in Arjuni/Morgaon, Gondia. The study emphasizes the importance of paddy processing in enhancing the usability and marketability of rice, which is a staple food for over 65% of India's population. India ranks second in global rice production and first in area under cultivation. The rice processing sector, critical to food security and rural employment, has evolved significantly with the advent of modern milling technology, especially in high-production districts like Gondia. The unit under study had a total capital investment of ₹690.45 lakhs and operated for 265 days in 2023–24. It processed 86,400 quintals of paddy, yielding fine rice (70%), broken rice (9.8%), husk (17%), and rice bran (3.2%). The total cost of production was ₹16.81 crores, while the total gross returns were ₹30.67 crores, resulting in a net return of ₹14.19 crores. The cost of processing per quintal of fine rice was ₹2,244, generating a net return of ₹2,255 per quintal, reflecting strong profitability. The benefit-cost ratio (BCR) was 1.90 overall, with a significantly higher return from fine rice (2.01). The internal rate of return was calculated at 26.09%, with a payback period (PBP) of just 1 year and 2 months. The break-even point analysis revealed that the unit operated well above the threshold level, confirming its financial sustainability. The study concludes that paddy processing units in the region are not only profitable but also contribute significantly to employment and regional economic growth.