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oil mill profit analysis India

Market Analysis

Edible oil is the major elements of our meals and every person uses of various edibles oils in food every day in one or the other form. Many regions of India are quite prosperous in respect of the oil seeds, especially Madhya Pradesh. There are mainly two methods of extracting oil from the seeds> Expelling method and solvent extraction method. Boiler and steam kettle is quite important if oil has to be extracted out of ground nuts cottonseeds, soyabean and castor seeds. The quantity of oil would increase by 2%. Read more about mustard oil mill profitability >>

There is ever green demand for oil. Because every house hold and hotel use oil every day in food items like curries and biryanies etc. Since it is a consumer product the market is growing.

Oil Manufacturing Process

Expeller is used to extract oil out of oilseeds. Oil expellers of varying capacity are available in markets ranging from 30 Kg to 300 Kg per hour. Filter pres is used for filtering the oil extracted out of oilseeds. The use of filter press would be relevant only if the entrepreneur himself extracts the oil from the seeds and sells it himself. But if the enterprenuer wants to extract oilon the basis of job work, he would not require filter press.

Production Capacity per Year

Capacity Selling Price (Rs.)
12000 Ltrs per annum 62 Per Ltr

Project Cost / Capital Investment

Description Amount Rs.
Preliminary & Preoperative Expns 3000
Fixed Capital 89000
Working Capital for 1 month(s) 56640
Total Project Cost 148640

Means of Finance

Description %ag Amount Rs.
Promoter Contribution 15% 22296
Subsidy /Soft Loan 20% 29728
Term Loan 65% 96616
Total   148640

Financial Aspects

A: Fixed Capital

1. Land and Buildings : Rented 3000 per month

2. Machinery and Equipment

Description Qty. Rate Amount Rs.
Expeller 1 35000 35000
Filter press 1 15000 15000
Boiler for 4 volts 5 1600 8000
Steam kettle 1 13000 13000
Balance , weighs 1 8000 8000
Other equipment 1 10000 10000
Total     89000

B: Working Capital

1. Salaries & Wages (per month)

Description Nos. Sal/mon. Amount Rs.
Supervisor/Entrepreneur 1 2500 2500
Skilled workers 1 2000 2000
Total     4500

2. Raw Material (per month)

Description Unit Qty. Rate Amount Rs.
Ground Seeds Kgs 600 22 13200
Mustard Kgs 1890 16 30240
Total       43440

3. Utilities (per month)

Description Unit Amount Rs.
Power LS 1000
Water LS 200
Total   1200

4. Other Expenses (per month)

Description Amount Rs.
Transportation Expenses 2000
Advertisement Expenses 500
Consumeble Stores 1000
Miscellaneous Expenses Total 1000
Total 4500

5. Total Working Capital (per month)

Description Amount Rs.
Rent 3000
Salaries and Wages 4500
Raw Material 43440
Utilities 1200
Other Expenses 4500
Total 56640

Cost of Production(Per Year)

Description Amount Rs.
Total Working Capital 679680
Depreciation 13350
Interest 11594
Total 704624

Turnover(Per Year)

Description Qty. Rate Rs. Amount Rs.
Ltrs per year 1200 62 744000
Total     744000

Fixed Cost

Description Amount Rs.
Depreciation 13350
Interest 11594
Rent 36000
Salaries & Wag 21600
Other Expenses incl. Utilitie 27360
Total 109904

Profit Analysis& Ratios

Net Profit Percentage of Profit on Sales Percentage of Return on Investment Break Even Point
39376 Rs. 5% 26% 74%