Detailed Project Report (DPR) on mustard oil and flour mill (integrated unit)

MUSTARD OIL AND FLOUR MILL (INTEGRATED UNIT)
[CODE NO.3175]  

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 tons 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 14.4 kg/person per

annum which is considerably low as compared to the world average of 24 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:

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.

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 service for 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, sesame and soybean etc have been found to be almost completely assimilated.  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, and east India, It is the 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                                :       MUSTARD OIL & FLOUR MILL(INTEGRATED        
Land & Building (15.93 Acres)    :    Rs. 21,51 Cr
Plant & Machinery                          :    Rs. 27.68 Cr
Working Capital for 1 Months     :    Rs. 58.88 Cr
Total Capital Investment              :    Rs. 10.45 Cr
Rate of Return                                  :    45%
Break Even Point                             :    367%

INTRODUCTION    
WHEAT FLOUR MILL    
VARIETIES OF MUSTARD SEED    
FATTY ACID COMPOSITION OF MUSTARD OIL MUSTARD OIL
   (FROM BLACK MUSTARD SEED)    
MUSTARD OIL (FROM WHITE MUSTARD SEEDS)    
PHYSICO-CHEMICAL CHARACTERISTIC    
OIL SEEDS & % OF OIL CONTENT    
USES AND APPLICATIONS OF MUSTARD OIL    
USES AND APPLICATIONS OF WHEAT FLOUR    
MUSTARD OIL PROPERTIES    18
OVERVIEW OF INDIAN EDIBLE OIL INDUSTRY    
MARKET SURVEY    
DOMESTIC EDIBLE OILS PRODUCTION, IMPORT & CONSUMPTION    
INDIA EXPORT DATA OF AGRO FOOD PRODUCT: OIL MEALS    
MARKET POSITION OF PACKAGED WHEAT FLOUR    
ROLLER FLOUR MILLING IN INDIA    
MANUFACTURERS OF FLOURS, MAIDA AND SUJI
COMPOSITION OF FLOUR    
FLOUR IMPROVERS  
RAW MATERIALS FOR FLOUR MILLS    
ROLLER FLOUR MILL MACHINERY    
MANUFACTURING PROCESS OF WHEAT FLOUR    
PROCESS FLOW SHEET    
MANUAL PROCESS (OPTIONAL) FOR CLEANING AND CONDITIONING  
QUALITY AND GRADE    
GENERAL TESTS    
MANUFACTURING PROCESS OF MUSTARD OIL    
MANUFACTURING PROCESS (MUSTARD OIL)    
MANUFACTURERS AND EPORTERS OF MUSTARD OILS    
GENERAL PLANT LAYOUT    
OTHER MISCELENEOUS ACTIVITIES    
STANDARDS    
WASTE TREATMENT PRIMARY TREATMENT    
EQUIPMENT REQUIREMENT    
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    
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    169
LIST OF FOREIGN MANUFACTURER/SUPPLIER OF PLANT & MACHINERY    
SUPPLIERS OF PLANT AND MACHINERY    
SUPPLIERS OF FLOUR MILLING MACHINE    
CHAKKI FLOUR MILL MACHINERY    
SUPPLIERS OF WHEAT (RAW MATERIALS)    
CONSULTANT FOR SETTINGUP FLOUR MILL    


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