Detailed Project Report on Mini Oil Plant Suitable for Groundnut Oil and Cotton Seed Oil

MINI OIL PLANT SUITABLE FOR GROUNDNUT OIL AND COTTON SEED OIL

[EIRI/EDPR/1371] J.C. 143

INTRODUCTION

Ground Nut Powder otherwise known as peanut oil, arachis oil, or earthnut oil, is one of the two or three most important edible Oils in (oil content 45-55%) of the plant arachis hypogaea, which is grown in large quantities is Africa, India and china. The oil is pate yellow and has the characteristic order and flavour of peanuts. Compared with other seed oils, particularly cottonseed oil, it is relatively free of phosphatides and nonoil constituents. Groundnut oil is used mainly for edible purposes in the preparation of shortenings, margarines and mayonnaise and as a cooking and salad oil of pharmaceutical quality is obtained from the seed by cold expression. The B.P recommends its use as a substitute for olive oil in making ointments, liniment its, plasters and soaps. Its use is authorized in preparations such as solutions of vitamin A and D Groundnut oil is considered to be an aperients and an emollient. In veterinary medicine, it is used as a nutritive laxative and emollient. It has been employed  in the form of an emulsion for the control of several insect pests of plants.

Groundnut Oil and Powder is being manufactured by a number of units in India. It is assumed that there are about 400 expellers on small scale which is engaged in the extraction of groundnut oil. The endusers plant of the groundnut oil are growing day by day so the demand of groundnut oil. The raw material and plant & machinery for the extraction of groundnut oil are indigenously available, so this project can be set up without hesitation.

Although cotton plant is cultivated mainly for fibre, the cottonseed is an important by product. The seed forms about two-third of the total produce of kapas (seed-cotton) of the plant, the remaining one-third being the fibre which is the major raw material for the textile industry. The cottonseed is a rich source of protein and edible oil and ancient Hindu scriptures recorded that cotton seed was crushed to get oil. Traditionally, cottonseed has been used as cattle feed in our country. The use of cotton-seed for extraction of edible oil on a commercial scale is comparatively of recent origin.

Commercial cottonseed consists of Linters (10-15 percent) Hulls (35-40 percent) and Kernels (50-55 percent). Linters are short fibres which contain: 72-85 percent cellulose. Pectic substances, minerals, nigrogenous materials, waxes, resins, pigments and water soluble carbohydrates, acids etc. constituting 15-28 percent of the linters.

Linters are often mixed up with seed when the cotton reaches the factory and hence proper cleaning is essential. Linters are used in paper making, art silk, absorbent cotton, explosives, plastic yarns for upholstry and pure cellulose products which compete with wood pulp. Linters find markets and in view of their commercial value delinting must be carried out efficiently. Delinting expenses can be easily recovered by the commercial value of linters. Improved chemical methods of delinting have been developed in countries outside India and it consists of wetting the seeds with 10 percent sulphuric acid and drying to remove water portion from the acid. Linters become fragile and are removed by rotary action. But acid treated linters do not have commercial value and are therefore not economical when compared to saw delinting machines for removal of linters.

Before oil extraction, cotton seeds are subjected to dehulling or decortication. Hulls consist of 4.4 percent cellulose, pentosans 29 percent, lignings 22 percent and other components 5 percent. Dehulling enhances the nutritive value of cottonseed meals. Since protein content is increased and used as animal feed supplement, coarse debulling is better to reduce formation of fines to minimum. Cracking the seeds is followed by decortication to separate hulls from the kernels.

Cotton a crop of the drier part of India. Andhra Pradesh, Gujarat, M.P. Maharashtra, Karnataka, Rajasthan, Tamil Nadu and Uttar Pradesh together accounts about 90% of the total 1 area under cotton cultivation and about 75 percent of the production, Punjab, Haryana and some other states account for the rest.

India grows a large number of cotton type belonging to Gossypium arborcum, G. herbaccum and G. hirsutum. The bulk of the cotton crop is grown under rain-fed conditions.

The cotton or seed cotton crop is usually harvested in 3 or 4 pickings, taken at suitable intervals. Picking is carried out by hand, mostly, most by women. Cotton is picked only when the bolls are fully mature. Jully open and the floss has puffed up consequent on exposure to sun.

Kapas or seed cotton collected from the field is the lint that surrounds the seed, it contains in addition extraneous impurities, such as dried leaf fragments, which attach themselves to cotton during harvesting and handling. The lint adheres rather tanciously to seed and its separation without damage to the fibres calls for care and the employment of appropriate devices. A small amount of seed cotton is ginned in villages by the use of charkha. The bulk of it, however a ginned in factories by power driven machinery.

Cotton seed is a byproduct of the cotton ginning industry. The seeds, after removal of fuzz, are dark brown or nearly black in colour.

The development of cotton seed oil industry in India has been some what slow for various reasons. First, since cotton seed was predominently used on cattle feed, most enterpreneurs did not find crushing, economically attractive, Secondly, it was found very difficult to establish markets for the oil. Thirdly, unlike other oil seeds, the efficient and economic crushing of cotton seed requires specialized machinery both for pretreatment as well as for refining of the oil which is beyond the means of ordinary crusher in rural area. The Government of India have from time to time been seized of the importance of segmenting the edible oil resources in the country by proper utilization of cotton seed.

Cotton seed oil industry is divided into two sector viz. (i) organized, large mills which have the full range of equipment including seed cleaning, delinting and hulling machinery and produce refined oil, decorticated cakes and linters on a scientific basis and (ii) unorganized, small oil mills which irregularly crush cottonseed without pretreatment and produce undecorticated cake and oil of inferior quality.

COST ESTIMATION

Plant Capacity            10 MT/Day

Land & Building (3000 sq.mt.)    Rs. 3.98 Cr

Plant & Machinery                    Rs. 92.95 Lac

Working Capital for 3 Months    Rs. 3.25 Cr

Total Capital Investment          Rs. 8.35 Cr

Rate of Return                          39%

Break Even Point                      41%

CONTENTS

INTRODUCTION

USES AND APPLICATION

PROPERTIES OF GROUNDNUT OIL

VARIETIES OF COTTON SEED

B.I.S.SPECIFICATION

MARKET SURVEY

EDIBLE OIL IMPORTS TO BRIDGE DEMAND SUPPLY GAP

PRESENT MANUFACTURES OF GROUND NUT OIL

MANUFACTURING PROCESS OF GROUNDNUT OIL EXTRACTION AND REFINING

PROCESS FLOW DIAGRAM FOR GROUNDNUT OIL EXTRACTION AND REFINING

MANUFACTURING PROCESS OF COTTON SEED OIL EXTRACTION AND REFINING

PREPARATION OF OIL SEEDS

PROCESS FLOW DIAGRAM FOR COTTON SEED OIL EXTRACTION AND REFINING

ADDRESSES OF CONSULTANTS

SUPPLIERS OF PLANT AND MACHINERIES

SUPPLIERS OF RAW MATERIAL

PLANT LAYOUT

PRINCIPLES OF PLANT LAYOUT

PLANT LOCATION FACTORS

EXPLANATION OF TERMS USED IN THE PROJECT REPORT

APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING

03. PLANT AND MACHINERY

04. OTHER FIXED ASSESTS

05. FIXED CAPITAL

06. RAW MATERIAL

07. SALARY AND WAGES

08. UTILITIES AND OVERHEADS

09. TOTAL WORKING CAPITAL

10. TOTAL CAPITAL INVESTMENT

11. COST OF PRODUCTION

12. TURN OVER/ANNUM

13. BREAK EVEN POINT

14. RESOURCES FOR FINANCE

15. INSTALMENT PAYABLE IN 5 YEARS

16. DEPRECIATION CHART FOR 5 YEARS

17. PROFIT ANALYSIS FOR 5 YEARS

18. PROJECTED BALANCE SHEET FOR (5 YEARS)