Mustard Oil
Project cost: 86 lakh
Uploaded on : September 2009
Product and its Applications
The edible oils of vegetable origin are the most important sources of cooking oil. Mustard oil accounts for almost 40% of the total edible oil output in the country. Mustard is produced all over northern India and substantial acreage is under it in Rajasthan (29 lakh tonnes), Haryana, MP and Gujarat (20 lakh tonnes together), UP (8.8 lakh tonnes) and Punjab .
Natural unrefined mustard oil extracted through cold process is quite pungent. The consumers of traditional product prefer pungent oil. Till now the extraction of pungent oil could be possible only by Rotary Ghani due to mustard seed moisture range of 10-12%, low temperature of extraction in wooden bowl wherein the pungent principle - allyl isothiocyanate does not evaporate. However, the expeller made of metallic components and high compression ratio raises the seed temperature up to 80-100°C resulting in loss of pungent principles. The "Modern" oil expeller provides high pungency mustard oil by low temperature crushing through incorporation of a water cooled chamber and processing at critical moisture levels of oilseed.
Market Potential
Mustard oil is the popular cooking oil in northern, central, eastern and north- eastern region. There exists a large scope to set up a number of small scale mustard expellers for local production of high pungency oil, which fetches a premium price.
Basis and Presumption
- The unit proposes to work at least 300 days per annum on single shift basis.
- The unit can achieve its full capacity utilization during the 2nd year of operation.
- The wages for workers is taken as per prevailing rates in this type of industry.
- Interest rate for total capital investment is calculated @ 12% per annum.
- The entrepreneur is expected to raise 20-25% of the capital as margin money.
- The unit proposes to construct own building.
- Costs of machinery and equipment are based on average prices enquired from machinery manufacturers.
Implementation schedule
Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below:
| Scheme preparation and approval | 01 month |
| SSI provisional registration | 1-2 months |
| Sanction of financial supports etc | 2-5 months |
| Installation of machinery and power connection | 6-8 months |
| Trial run and production | 01 month |
Technical aspects
Location
The unit can be set up in oilseed producing regions or near the consumption centres. However, availability of power and road connectivity should be ensured.
Salient Features of Process / Technology
The seeds are cleaned to remove dust, dirt and foreign particles. These are cured to bring the moisture level of 10-12% and passed through oil expeller. The oil cake is conveyed automatically and pressed to achieve maximum oil recovery, which is about 35% depending upon he variety and quality of seed. The oil is filtered and filled into 1 kg Pet bottles or 16 kg tins.
Quality Control and Standards
As per BIS/PFA requirements
Pollution Control
There is no major pollution problem associated with this industry except for disposal of waste which should be managed appropriately. The entrepreneurs are advised to take "No Objection Certificate" from the State Pollution Control Board.
Energy Conservation
The fuel for the steam generation in the boiler is coal or LDO depending upon the type of boiler. Proper care should be taken while utilising the fuel for the steam production. There should be no leakage of steam in the pipe lines and adequate insulation should be provided.
Production Capacity
| Quantity | 300 tpa |
| Installed capacity | 1200 kg/day |
| Optimum capacity utilization | 70% |
| Working days | 300/annum (3 shifts) |
| Manpower | 22 |
| Utilities | |
| Optimum capacity utilization | 70% |
| Motive Power | 8 kW |
| Water | 10 kL/day |
Financial Aspects
Fixed Capital
Land & Building Amount (Rs. lakh)
Particulars |
Amount (Rs. lakh) |
| Land 400 m 2 | 02.10 |
| Built up area 250 m 2 | 12.90 |
| Total cost of land and building | 15.00 |
Machinery and Equipment Amount (Rs. lakh)
Description |
Amount |
|
07.00 |
| Erection & electrification of machinery & equipment @10% cost | 00.70 |
| Office furniture & fixtures | 02.30 |
| Total | 10.00 |
Pre-operative Expenses Amount (Rs. lakh)
| Consultancy fee, project report, deposits with electricity department etc | 01.00 |
Total Fixed Capital Amount (Rs. lakh)
| (9.1.1+9.1.2+9.1.3) | 26.00 |
Recurring expenses per annum
Personnel Amount (Rs. lakh)
Designation |
No. |
Salary Per month |
Amount |
| Factory Manager | 1 | 10,000 | 01.20 |
| Supervisory staff | 2 | 8,000 | 01.92 |
| Office Assistant | 2 | 7,500 | 01.80 |
| Technician | 0 | 6,000 | 00.72 |
| Skilled workers | 3 | 4,000 | 01.44 |
| Unskilled workers | 8 | 3,000 | 02.88 |
| 09.96 | |||
| Perquisites @15 % | 01.24 | ||
| Total | 11.20 |
Raw Material including packaging materials Amount (Rs. lakh)
Particulars |
Qty (t) |
Rate/t (Rs.) |
Amount (Rs. lakh) |
| Mustard seeds | 860 | 23,000 | 197.80 |
| Pet bottles with cap | 3 lakh | 4.80 each | 014.40 |
| Shrink wrapping rolls | LS | LS | 000.48 |
| Labels | 3 lakh | 0.90 each | 002.70 |
| Cartons cap. 24 bottles | 12,500 | 32 each | 004.00 |
| Gunny bags | LS | LS | 001.12 |
| Total | LS | LS | 220.50 |
Utilities Amount (Rs. lakh)
Particulars |
Amount (Rs. lakh) |
| Power 55000 kWH | 02.80 |
| Water 3000 kL | 00.20 |
| Fuel for boiler | 00.80 |
| Total | 03.80 |
Other Contingent Expenses Amount (Rs. lakh)
Particulars |
Amount(Rs. lakh) |
| Repairs and maintenance @10% | 00.77 |
| Consumables, filter cloth & spares | 00.93 |
| Transport & travel | 00.80 |
| Publicity, postage, telephone | 01.00 |
| Insurance @1% | 00.20 |
| Total | 03.70 |
Working Capital Amount (Rs. lakh)
| Recurring expenses for 3 months | 60.00 |
Total Capital Investment Amount (Rs. lakh)
| Fixed capital (Refer 9.1.4) | 26.00 |
| Working capital (Refer 9.3) | 60.00 |
| Total | 86.00 |
Financial Analysis
Cost of Production (per annum) Amount (Rs. lakh)
| Recurring expenses (Refer 9.2.5) | 219.70 |
| Depreciation on building @ 5% | 000.65 |
| Depreciation on machinery @10% | 000.85 |
| Depreciation on furniture @ 20% | 000.48 |
| Interest on Capital Investment @12% | 010.32 |
| Total | 232.00 |
Sale Proceeds (Turnover) per year Amount (Rs. lakh)
Item |
Qty |
Rate (Rs.) |
Amount (Rs.lakh) |
| Mustard Oil in 1 kg bottle | 300 | 18,000 | 216.00 |
| Mustard cake | 540 | 10,000 | 054.00 |
| Total | 270.00 |
Net Profit per year
= Sales – Cost of production |
Net Profit Ratio
Net profit X 100 Sales 38X 100 270 = 14 % |
Rate of Return on Investment
Net profit X 100 Capital Investment 38X 100 86 = 44 % |
Annual Fixed Cost Amount (Rs. lakh)
| All depreciation | 01.98 |
| Interest | 10.32 |
| 40% of salary, wages, utility, contingency | 07.50 |
| Insurance | 00.20 |
| Total | 20.00 |
Break even Point
Annual Fixed Cost X 100 Annual Fixed Cost + Profit 20X 100 = 34.5 % |
Addresses of Machinery and Equipment Suppliers
- Nandy Eng. Works
139, Benaras Road
Howrah-711 106 - Azad Eng. Co.
C-83, B.S.Road Industrial Area,Ghaziabad-201 009 - Guru Tegh Eng. Co.,G.T.Road, Millerganj, Near Fire Brigade
Ludhiana - Punjab Engg. Works, 32, Ram Krishna Samadhi Road
Kolkata – 700 054 - S.P.Engg. Co.
79/9, Latouche Road ,
P.B. No. 218,
Kanpur – 208 001 - Lyallpur Engg. Co.
G.T.Road, P.B. No. 8,
Ghaziabad (U.P.) - Delhi Iron and Steel Co. Pvt. Ltd.
G.T.Road,
Ghaziabad (UP) - Swastik Engg. Works,
198, Panjara Pole Road
Mumbai – 400 004 - Parekh Machine Tools
5, Khetra Das Lane ,
Behind Broadway Hotel
Kolkata-700 012 - Mecpro Heavy Eng Ltd.
610, Somdutt Chambers II
Bhikaji Cama Place ,
New Delhi – 110 066 - Chemical Construction International (P) Ltd.
J-12, Basement, Saket, New Delhi – 110 017 - Japro International (P) Ltd.
Flower Valley Complex
Tower No. T-2, First Floor
Off Eastern Express Highway
Thane (West) – 400 601 - Muez-Hest Process Technologies (P) Ltd.,
231, Blue Road Industrial Estate,
New Cable Corporation, Western Express Highway ,
Borivalli East, Mumbai – 400 066 - Om Sons International,77-A, Industrial Estate,
Ludhiana - 141 003. - Jindal Expeller Industries
58-B, Industrial Estate, Miller Ganj,
Ludhiana-141 003. - Veendeep Oiltek Exports
A-67, MIDC, Taloja,
Navi Mumbai- 410 208. - Troika Processes Private Limited, Mumbai
607, 6th Floor, Embassy Centre, Nariman Point,
Mumbai- 400 021. - Karnataka Iron Works, Mangalore
Balmatta Road ,
Mangalore,
Karnataka- 575 002. - Servotech India Limited, Mumbai
Office No. 8, a Wing, ''b'' Building, Shiv Sagar Apartments Ram Baug,
S. V. Road, Neat Vijay Sales, Borivali [ w ],
Mumbai- 400 092 - Sunman Engineers India , Faridabad
41B, New DLF Industrial Area,
Faridabad - 121 003. - Vinco Industries
47 - b, Industrial Estate,
Ludhiana- 141 003. - Glamptech Agro Process Pvt. Ltd
105, Charisma Centre, 19th Road, Chembur,
Mumbai- 400 071 - Sethia Oil Industries Limited, 2, Exchange Place ,
Kolkata- 700 001 - Aum Consultancy Pvt. Ltd
Odyssey 2nd Floor, Gandhi Nagar, Adayar,
Chennai- 600 020. - Heiza Chem Engineers Private Limited
P-29, Sukanta Sarani,
Kolkata-700 008. - Ritika Projects International, New Delhi
B-365, C R Park,
New Delhi- 110 019
Other Special Features
A careful selection of product mix is necessary based on the local market demand and availability of raw materials. The facilities can also be utilised to manufacture oil from copra, groundnut, sunflower etc. for fuller utilisation of capacity.
Contact for more information
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
