How to start Mustard oil extraction mill business plan Project Report, सरसों तेल का बिजनेस कैसे शुरु करें।

How to start Mustard oil extraction mill business plan Project Report, सरसों तेल का बिजनेस कैसे शुरु करें।

Mustard oil mill detailed Project Report

Mustard oil is a fatty vegetable oil extracted from the mustard seeds. It is dark yellow in color and slightly pungent. There are generally three types of mustard oils depending upon the manner of extraction. The first is a fatty vegetable oil obtained by pressing the mustard seeds. The second one is a essential oil that is made by grinding the seeds, mixing them with water and extracting the oil through distillation. The third process involves infusing mustard seed extract with other vegetable oils such as soy bean oil. All three categories of oil have a pungent nutty taste and a strong aroma.

Mustard oil is extracted from mustard seeds and is commonly used in India. It is an ancient oil that is said to be loaded with many health benefits. Mustard oil is full of MUFA which is very important for our health. Mustard oil is made from pressing the seeds of a mustard plant to produce a spicy oil. Mustard oil is popular in Eastern cooking, although some American chefs have begun experimenting with the oil, which has a heat and distinctive flavor to it. Real mustard oil, however, is actually banned for cooking uses by the FDA. This is because it contains an ingredient called erucic acid that has been shown to cause heart problems. Erucic acid is a fatty acid that it is not well metabolized. It’s considered a contaminant.

In Eastern and North Eastern India, it is hard to imagine life without a bottle of mustard oil at home. It is believed to have miraculous properties, and therefore is used as a remedy to treat cold, boost immunity, encourage hair growth, provide nourishment to skin (especially in case of babies who are massaged with mustard oil during winters and made to sunbathe for a dose of Vitamin D and also to strengthen the bones), oral health, so on and so forth. Mustard oil (sarson ka tel) is extracted from mustard seeds (black, brown and white), and is reddish brown or amber in colour. It has been commonly used in North and East India since ancient times, and comes with a bevy of health benefits.

Market Potential In Mustard Oil Extraction Business:

It has enormous demand as one of the edible oils and used as cooking medium especially in northern, eastern and north eastern of India. The demand of Mustard Oil is increasing with the time. Refined Ghani, filtered, double filtered mustard oil have given new thrust to its market. Due to consumption in household and in pickle industries it appears to be good scope for establishing mustard oil industry.

Basis & Presumptions:

1. This project is based on single shift basis and 300 working days in a year.
2. The cost of machinery & equipment/materials indicated refer to a particular make and the prices are approximate to these prevailing in the market at the time of preparation of this profile.
3. Depreciation has been taken as an –
a) On Machinery & Equipment @ 10%
b) On Office Furniture & Fixture @ 20%
4. Interest on Total Capital Investment has been taken @ 12% per annum.
5. Minimum 40% of the total investment is required as margin money.
6. Pay back period of the project will be 7 years, with half yearly  installments.
7. Break Even Point has been calculated at the full capacity utilization.
8. For smooth functioning of unit it is suggested that unit should have a good stock of quality raw material (mustard seed).
9. The yield of mustard oil, mustard oil cake and wastage (stone/dust) have been taken as 35%, 60% & 5% based on raw mustard seed.

Implementation Schedule :

The following steps involves in the implementation of the project.
a) Selection of site.
b) Form ownership.
c) Feasibility report.
d) Registration with DIC, PFA etc.
e) Arrangement of finance.
f)Construction of Factory Shed & Building.
g) Plant Erection & Electrification.
h) Recruitment of manpower.
i)Arrangement of raw materials including packaging materials.
j)Selection of marketing channel.
k) Miscellaneous work ie. Power and Water connection, Pollution control board clearance etc. Normally 6 months is required to implement the project.

Manufacturing Process of mustard oil extraction :

The seeds are to be dried in sun and then they are to be cleaned by shakers to remove dust and foreign materials. The seeds are initially steamed and then passed through the expeller and the process is repeated till the maximum oil is extracted out of the seeds. The filtered oil is filled in to the containers, which are
subsequently sealed and labeled for marketing. On an average around 35% recovery of oil from the seed is made.

Quality Specification

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-546-1975 (2nd revision). The entrepreneur may approach the appropriate authorities to get ‘AGMARK’ or ISI specification for better marketing of the product.

Production Capacity (per annum)-

The estimated production capacity per annum is as follows -

Mustard Oil                                                    134.0 M. T.                                               
Mustard Cake                                                 230.0 M.T.

Total:                                                               Rs. 122.30 Lakhs

Power requirement -                                  30 KW

Pollution Control:

Entrepreneur is advised to contact State Pollution Control Board for detailed guidance directly.

Machinery & Equipment Used in Mustard Oil Extraction -

1. Oil Expeller with Single Steel gear Set size 27” X 5”, 9 bolts capacity 80Kg/hr.
2. Filter press frame type 14” X 14”X 14’ plates plunger pump and filler cloth.
3. Oil Storage Tank
4. Electronic Weighing Scale
5. Misc. equipment & Tools such as weighing Scale Can Sealing machine, Box stamping machine etc.
6. Electrical Accessories:
Electric Meter 15 HP ( 2 Nos.), Starter, Switch & others

TOTAL:                                                           Rs. 7.17 lakhs

WORKINGCAPITAL (3 month)                      Rs.27.33 lakh


A. Fixed Investment                         Rs. 7.17 Lakh
B. Working Capital for 3 months     Rs. 27.33 Lakh

Total:                                                Rs.34.50 Lakhs


A. Cost of production ( per annum):                   Rs. 114.525 Lakh

B. Turnover ( per annum):

Mustard Oil 134 MT              Rs 80,000/-               Rs/anum 107.20 lakh
Mustard Oil Cake 230 MT    Rs7,000/-                   Rs/anum 16.10 lakh

Total :                                                                   Rs. 123.30 Lakh
LS Marketing Expenses ( – )                               Rs. 1.00 Lakh
Net Sales :                                                            Rs. 122.30 lakh

C. NET PROFIT Per Annum (Before Taxes): Rs.7.775 Lakh




Machine Manufacturers and suppliers of Mustard Oil Extraction mill and raw materialManufacturers and suppliers of Mustard Oil Extraction mill

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How to start Mustard oil extraction mill business plan Project Report, सरसों तेल का बिजनेस कैसे शुरु करें।
How to start Mustard oil extraction mill business plan Project Report, सरसों तेल का बिजनेस कैसे शुरु करें।


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