Detailed Project Report on mustard oil plant

 
MUSTARD OIL PLANT
[CODE NO. 1987]

Indian Edible Oil Industry Vegetable oil and oil seeds are two of the essential commodities for the consumer’s daily needs. India is one of the largest producers of oilseeds in the world with an area of 26.54 million hectares under cultivation producing 23-28 million tonnes of oil seeds every year depending on the monsoons. It produces nine types of oil seeds namely, Groundnut, Soybean, Rape/Mustard seed, Sunflower seed, Sesame seed, Castor seed, Niger seed, Safflower seed, Linseed. It also enjoys the position of being the third largest consumer of edible oil in the world next only to US and China owing to its growing population, rising income levels and changing eating habits.

The per capita consumption has grown by 8.1 per cent over the last five years. It stood at 12.5 kg/person per annum which is considerably low as compared to the world average of 17.5 kg/ annum. Developed countries like Japan, Brazil and USA consume around 20.8 kg/annum, 21.3 kg/annum and 48.0 kg/annum respectively. The imports mainly comprise Palm oil, Soybean oil and Sunflower oil. Indonesia, Argentina and Malaysia are the key exporters of oil to India. Olive oil is mainly imported from European countries like Italy and Spain. Rapeseed oil is imported from UAE.

While mustard seeds are abundantly produced in most parts of India, its milling/grinding is mostly done by the large centralized plants, which have the advantage of high efficiency and reduced costs due to economies of scale. Despite the clear advantage of large plants, the importance of tiny decentralized oil extraction units cannot be discounted as they also prove to be economic and present opportunities for self- employment in situations:

where oil produced by large plants do not find its way to remote and distant places because of high transportation costs involved in wider distribution and in places where there is no oil expeller in the area and the farmers sell oil seeds to large refineries which they then buy back at high cost in the form of cooking oil but without the valuable high protein oil cake.


Therefore, in recognition of the existing opportunities of setting-up mustard oil expeller units in such situations, tiny units are suggested for the first generation Tribal entrepreneurs – the investment for which is modest and the operation is simple.

The unit is required to maintain a minimum stock of seed and enough to continue operations throughout the year. Hence, the location of the unit has to be essentially in those areas where the raw material is locally available in abundance.

In general, more profit could be made if the cooking oil is packed into retail size bottles.

However, considering the difficulty in obtaining glass or plastic bottles in large quantities in remote areas and blocking thereby substantial capital, the possibility of using second- hand bottles may be utilised. Alternatively, oil could be sold in drums to the provision stores in neighboring towns/cities.

The viability of any oil extraction unit considerably depends on the sale of the oil cake, which is extensively used as animal feed and other sub-products.

Primitive mills and presses for extraction of oils from seeds have been in use sevice long.  Mechanization came with  the introduction  of the hydraulic press by the  end  of  the  18th Century.  This too was replaced by the more efficient screw press or expeller towards the end of the last century.

Edible oil should have a fairly high keeping quality. However oils get spoilt in storage due to various spoilage factors, the chief among them being oxidation. The edible oils and  fats  such as olive, cottonseed, corn, groundnut, sesamum, soyabean etc have been found to be almost completely assimulated.  As such vegetable oils may be classed as edible and non-edible. Important vegetable oils are castor, coconut, cottonseed, linseed, mustard,olive, palm, groundnut,  sesamum,  soyabeans, sunflower and rice bran oil etc.

Oil seed crops occupy an important place in the agriculture and industrial economy of the country. India is perhaps the only country in the world having the largest number of commercial varieties of oil seeds. Mustard Oil is also one of the major oil seeds from which edible oil is produced. In Northern & Central India. It is medium of cooking food. Besides it is also used in preparation of Pickles. The Mustard Oil Cake (By Product) is used as cattle feed.


COST ESTIMATION

Plant capacity                                        100.00 MT/day  
Land & Building (19000 Sq.Mtr)             Rs. 18.36 Cr
lant & Machinery                                    Rs. 20.00 Cr
W.C. for 1 Month                                    Rs. 33.25 Cr
Total Capital Investment                         Rs. 72.08 Cr
Rate of Return                                       41%
Break Even Point                                    35%


INTRODUCTION    
VARIETIES OF MUSTARD SEED    
FATTY ACID COMPOSITION OF MUSTARD OIL MUSTARD OIL
  (FROM BLACK MUSTARD SEED)    
MUSTARD OIL (FROM WHITE MUSTARD SEDDS)    
PHYSICO-CHEMICAL CHARACTERISTIC
USES AND APPLICATIONS    
MUSTARD OIL PROPERTIES    
MARKET SURVEY    
INDIA EXPORT DATA OF AGRO FOOD PRODUCT: OIL MEALS    
MANUFACTURING PROCESS    
MANUFACTURING PROCESS    
MANUFACTURERS AND EPORTERS OF MUSTARD OILS    
GENERAL PLANT LAYOUT    
OTHER MISCELENEOUS ACTIVITIES    
STANDARDS    
WASTE TREATMENT PRIMARY TREATMENT    
EQUIPMENT REQUIREMENT    
MANPOWER    
UTILITIES    
STEAM    
LIST OF FOOD AND AGRO PROCESSING CONSULTANTS    
IMPLEMENTATION SCHEDULE    
QUALITY CONTROL MANAL PROCEDURE    
SUPPLIERS OF OIL EXPELLERS MACHINERY    
SUPPLIERS OF RAW MATERIALS    
STANDARDS APPLICABLE FOR STORAGE OF MUSTARD    
STANDARDS APPLICABLE FOR DOMESTIC MARKET    
QUALITY PARAMETERS    
SAFETY PARAMETERS    
STANDARDS FOR GRADING    
STANDARDS APPLICABLE FOR INTERNTIONAL TRADE.    
EGAL AND REGULATORY FRAMEWORK GOVERNING OIL SEED
PROCESSING INDUSTRY:    
PROCESS FLOW DIAGRAM OF OIL REFINING SECTION    
PROCESS FLOW DIAGRAM OF OIL REFINING SECTION – CONTINUES    
PROCESS FLOW DIAGRAM OF OIL PACKING SECTION    
MATERIAL BALANCE FOR PREPARATORY SECTION    
MATERIAL BALANCE FOR OIL REFINERY    
COMPLETE PLANT AND MACHINERY SUPPLIERS
FOR SOLVENT EXTRACTION PLANT    
LIST OF FOREIGN MANUFACTURER/SUPPLIER OF PLANT AND MACHINERY    
SUPPLIERS OF PLANT AND MACHINERY    
DE-GUMMING / PRE-REFINING BATCH PROCESS, RE-REFINING
(LONG-MIX) & WATER WASHING REFER FLOWCHART DLX-01    
HEAT RECOVERY SECTION (BOTTOM TRAY)    
PLANT LAYOUT    


APPENDIX – A :

 1.      COST OF PLANT ECONOMICS      
 2.      LAND & BUILDING                                      
 3.      PLANT AND MACHINERY                                  
 4.      FIXED CAPITAL INVESTMENT                             
 5.      RAW MATERIAL                                         
 6.      SALARY AND WAGES                                     
 7.      UTILITIES AND OVERHEADS                              
 8.      TOTAL WORKING CAPITAL                                
 9.      COST OF PRODUCTION                                   
10.      PROFITABILITY ANALYSIS                               
11.      BREAK EVEN POINT                                     
12.      RESOURCES OF FINANCE                           
13.      INTEREST CHART                                       
14.      DEPRECIATION CHART                                   
15.      CASH FLOW STATEMENT                                   
16.      PROJECTED BALANCE SHEET