MUSTARD OIL EXPELLER 1. INTRODUCTION. : 1,05,000 Kg of Mustard Oil + Byproducts (Value) : Rs. 25,49,500/- MONTH AND YEAR : July, 2014 OF PREPARATION

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1 MUSTARD OIL EXPELLER SERVICE CAPACITY : 1,05,000 Kg of Mustard Oil + Byproducts (Value) : Rs. 25,49,500/- MONTH AND YEAR : July, 2014 OF PREPARATION PREPARED BY : Sh. Abhishek Singh Assistant Director (Mechanical) 1. INTRODUCTION Mustard/Rapeseed oil is the third largest edible oil produced in the world after Soy oil and Palm oil. At a production level of million tons, it accounts for about 12% of the total World's edible oil production. India is estimated to have a total mustard seed output of 5 million ton while oil is around 1.3 million tons. The country also generates 2.4 million tons of oil cake. India is self-sufficient in mustard seed and oil as import and export of the commodity is almost non-existent. However India exports around 400,000 tons of oil cake. Cultivation of mustard is between October-November and February-March. Major growing areas are Rajasthan, Uttar Pradesh, and Haryana. Broadly seven varieties of mustard / rapeseed are grown in India. Most popular varieties grown in Indian subcontinent are Brassica Juncea, Braassca campestris and Brassica napus L. Being an important source of edible oil and feed meal to the country, mustard is undoubtedly the focus of Indian edible oil industry. The seasonal nature of the production of mustard seed and its high susceptibility to natural fallacies, wide consumption spread all through the year, 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 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. 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. Hence, the location of the unit has to be essentially in those areas where the raw material is locally available in abundance. -94-

2 2. MARKET POTENTIAL Mustard oil is widely used edible oil especially in rural North and Eastern India. Its consumption is ever increasing with the growth of rural population. The tiny units are aimed to cater to local market and there is abundant potential to meet local requirement. 3. BASIS AND PRESUMPTIONS i. The unit is expected to work at 75% efficiency on 8 hrs. Single shift basis for full capacity utilizations. ii. iii. iv. The full capacity utilisation will be achieved in three years. 70% in the first year followed by 85% in the next year and the 100% in subsequent years. Labour and wages mentioned as per prescribed minimum wages and the proprietor is considered as a manager. Interest 13% in the project provide for recurring and nonrecurring investment. v. The cost of land, construction charges, cost of machinery and equipment, raw materials and consumables other expenses etc. initiated in the profile are based on the prices prevailing at the time of project preparation. Therefore, they are subject to necessary changes from time to time based on local conditions. 4. IMPLEMENTATION SCHEDULE Activity Survey for collection of data in respect of demand, raw material, including power and availability of technology, pollution control Period Starting to Completion 0 1 Month Arrangement for margin money 0 1 st Month Preparation of project document and registration and other clearance 1 st 2 nd Month Financial assistance 2 nd 3 rd Month Selection of site and development of land 3 rd 4 th Month Make shift office 3 rd 4 th Month Purchasing of machines & recruitment of staff 4 th 5 th Month Construction of building & selection of machinery 5 th 6 th Month Installation of machinery & purchase of raw materials 6 th 7 th Month Trial Operation 7 th 8 th Month -95-

3 5. TECHNICAL ASPECTS 5.1. Process Outline On crushing rapeseed or mustard, oil and meal are obtained. The average oil recovery from the seed is about 33%. The remaining is obtained as cake, which is rich in proteins and is used as an animal feed ingredient. In India, in particular, a wide range of efficient small or Baby" oil expellers are available in the market. A typical example is an oil expeller of as low a capacity of up to 100 Kg/hr. Such machine has a central cylinder or cage fitted with eight separate sections called "worms". This flexible system allows the use of single or double reverses and spreads the wear & tear more evenly along the screw. In the event of the screw getting worn out- only that particular unit / section is required to be repaired/changed thus reducing maintenance cost. As the material passes through the expeller, oil is squeezed out and flows through the perforated cage into a trough under the machine. The solid residue i.e., the oil cake is expelled from the back end of the expeller shaft where it is separately bagged Production/Service Capacity 1. Mustard Oil Extraction of 75,000 Rs18/Kg: Rs. 13,50, Extraction and sale of 11,500 Kg. of Mustard Rs 85 / Kg: Rs.9,77, Mustard Oil Cake (Residue) 18,500 Rs 12/Kg: Rs 2,22, Quality Control The quality of seeds should conform at least to the quality and standard laid down in P.F.A. Act. However, for better marketing the standards may be maintained as per AGMARK specification. The ISI specification is No. IS (2 nd revision) Pollution Control No Special pollution control measures are needed for manufacture of this item as long as anodizing for surface finishing of the product is done from outside source. 5.5 Energy Conservation General awareness is to be created for economic use of electricity at all points. Proper maintenance of expeller unit as per the service manual of the manufacturer, timely and preventive maintenance will lead to efficient energy saving and longer machine life. Justifiable use of the energy sources and timely checks of contact points will facilitate the smooth working and energy saving Motive Power Requirement 8 kw -96-

4 6. FINANCIAL ASPECT 6.1. Fixed Capital Land & Building: Land 100 sq.mtrs in semi-rural Area on Rs.100/- per sq.mtr Machinery and Equipments Sl. No. Description 1. Oil Expeller with Single Steel gear Set size 27 X 5 complete with motor. 2. Filter press frame type 14 X 14 X 14 plates plunger pump and filler cloth. Qty. (Nos.) Value (Rs.) Total (Rs.) 2 1,50,000 3,00, ,000 40, Tools and Accessories LS 10,000 10, Oil Container, bottles etc LS 5,000 5, Weight /volume measuring Equipment 1 2,500 2,500 Total 3,57,500 Electrifications and 10% of M/c Cost 35,750 Office Furniture, Chairs for customer 3,000 Pre-operative 5 % (Approx.) 17,875 Total Fixed Capital Rs. 4,14,125/ Working Capital (per month) Personnel S. No. Designation No Salary (Rs.) Total (Rs.) 1 Manager (Self) 1 20,000 20,000 2 Skilled Workers 2 10,000 20,000 3 Helpers / Un skilled Worker 1 8,500 8,500 Total 48,500 15% of salary 7,275 Total 55, Raw Material S.No. Raw Materials Qty Rate (Rs.) Total (Rs.) 1. Stock of Mustard Oil seeds 2,500 kg 28 70, Bottles & Packaging Materials LS 1,500 Total 71, Utilities 1. Power (1,600 Rs 6.0 per unit) Rs. 9, Water Rs. 500 Total Rs. 10,

5 Other Contingent Expenses S. No. Description Value (Rs.) 1. Rent 10, Postage and Stationery Telephone 1, Repair and maintenance 1, Lubricants Consumable stores 1, Transport charges 3, Advertisement and publicity 2, Insurance 1, Sales expenses 2, Misc Expenses 1,500 Total 25, Total Recurring Expenditure (per month) Rs. 1,62,375/ Total Capital Investment Fixed Capital Rs. 4,14,125 Working Capital (for 3 months) Rs. 4,87,125 Total Rs. 9,01,250/- 7. FINANCIAL ANALYSIS 7.1. Cost of Operation (per annum) S.No. Description Amount (Rs.) 1. Total Recurring Cost per year 19,48, Depreciation on Machinery & 10% 34, Depreciation on Tools & 10% 1, Depreciation on Office Equipment & 20% Interest on Total 13% 1,17,163 Total 21,02, Turnover Total Sales (per annum) Qty (Lt / Kg) Rate (Rs) Total (Rs) 1. Extraction and sale of Mustard Oil 11, ,77, Mustard Oil Cake (Residue) 18, ,22, Mustard Oil Extraction Charge 75, ,50,000 Total 25,49,

6 7.3. Net Profit (per annum) = Turnover Cost of Operation = Rs. 4,47,487/ Net Profit Ratio = Net profit per year Turnover per year X 100 = 17.6 % 7.5. Rate of Return = Net profit per year Total Capital Investment X 100 = 49.7 % 7.6. Break-even Point Fixed Cost (Per Annum) (Rs.) Rent 1,20,000 Total Depreciation 36,350 Total Interest 1,17,163 Insurances 18,000 40% of salary and wages 2,67,720 40% of other Contingent expenses (Excluding rent & Insurance) 64,800 Total 6,24,033 B.E.P = Fixed Cost Fixed Cost + Net Profit X 100 = 58.2 % -99-

7 Address of Machinery & Equipment Suppliers 1. M/s Bharat Industrial Corp. Petit Compound, Mana Chowk, Grant Road, Mumbai M/s Do-Well Oil Plant Pvt. Ltd. 306, Manish Commercial Centre, Dr. Annie Basant Road, Worli, Mumbai M/s Chemi Filter Corporation Shop No. 3, Aranti Apartments, Laxman Mhatre Road, Navagaon, Dahisar (West), Mumbai M/s Ballestra (India) Ltd. 11th Floor, Tulsiani Chambers, 212, Nariman Point, Mumbai Names & Addresses of Raw Materials Suppliers Raw material i.e Mustard Oil Seed can be purchased from the local suppliers available in the market. Major trading centres in mustard seed in the country are Jaipur, Hapur, Sriganganagar, Alwar in Rajasthan, Delhi, Mumbai and Kolkatta