Oil Mill Project Report Joshi PV

Oil Mill Project Report

PROJECT REPORT PROJECT REPORT OnOn

Oil Mill Oil Mill IndustryIndustry

PRESENTED BY:PRESENTED BY:

Joshi P. V.Joshi P. V.

Prepared & Submitted By: Joshi P.V. 1


GENERAL OVERVIEWSuitability of the Project for the Client / Promoter

• Past line / Experience of the Promoters• Risk Analysis based on Educational / Professional / Technical Qualification of the Client

Type of Proposed Project• New Project• Existing Project

• Expansion & Diversification• Balancing / Modification• Rehabilitation

Purpose• Term Loan•Working Capital•Share / Bond / Debt Market



Suitability of the Project•1.0 INTRODUCTION

Consumption of edible oils is increasing year after year and India imports large quantities every year. Different types of oil seeds are grown in the country like groundnuts, cotton seeds, mustard, rapeseed, sunflower etc. Oilseed crop occupies important position in the agricultural and industrial economy of the country and accounts for about 13% of the cropped area. Mustard seed is one of the five major oil seeds from which edible oil is produced. Edible oil is an integral part of the Indian palate since long and different varieties are popular indifferent parts of the country.

•Experience Since as an entrepreneur, I had a vide experience of working in

edible oil manufacturing, comprises complete process knowledge, market requirement and future growth of the industry.

•Risk AnalysisSince the market demands are high in this area the hardly there

is risk of failure. The area is surrounded of full of mustard fields and hence abundance source of manufacture is available.

Apart my education is as an engineer and full exposure to business document in my past experience, able to handle emergent tricky situations for the sustenance of the business.

Type of Proposed Project

• New Project.


Oil Mill Project ReportHighlights of the Project

1. Name of the Unit : ANISH PALM OIL MILL Pvt. Ltd.2. Promoter Group

• IDBI FINANCE & ASSOCIATS3. Constitution

• Pvt. Ltd

Project Implementing Participants

DTL (MSEB.) CALL CENTRE

Investment & Tech Transfer

ABC IndustriesOther

Manufacturing firms

Supply of Equipment& Construction

ANISH OIL MILLShendra, MIDC,

Aurangabad

Indigo Technologies

Operation

Credit Contract

Screw Decanter Manufacturing

Indian consuming firms

Design, Construction & Maintenance

Overall Design


Oil Mill Project Report1. Date of Incorporation• Starting date of the Project Activity (Plan) : 20 Jan 2012

• Location• Shendra MIDC area Aurangabad.

• Registered & Adm. Office1. SSI building, Andheri West, Sector 5, Mumbai - 18,

Maharashtra, India.

• Govt. approvalMIDC AURANGABAD,

• Capacitya) InstalledThe Mill has the capacity to handle 50 tones per hour of fresh fruit bunch (FFB).

b) Capacity Utilization envisage 70% of installed capacity is supposed to be utilized.

• Cost of the Project & Means of Finance.

• The project requires investment of around 110 million INR

To give a provisional calculation of income and expenditure of the Project, Development and facilities installation cost

(initial investment), Annual operating cost and administrative and maintenance cost, Annual operating revenue, the Economic Evaluation (IRR) and the Provisional IRR Calculation are shown in the Figures 3-7, 3-8, 3-9, 3-10 and 3-11 respectively.


Oil Mill Project ReportFigure 3-7 Development and facilities installation cost breakdown(initial investment)

Further, operating costs are estimated as follows:


Oil Mill Project ReportFigure 3-8 Annual operating cost and administrative and maintenance cost breakdown

Figure 3-9 Annual operating revenue (CERs)

＊ Business operational risk : 5% per year



1. Schedule of commencement of Commercial Production

• Starting date of the Project Activity (Plan) : 20 July 2012

2. Employment potential

• About 5 direct workers ,1 monitory staff and 15 contract casuals are required

3. Socio-Economic Advantage for the Area.

• Both the facilities cost reduction and the administrative and maintenance cost revision are the necessary requirement to enhance the reliability of the Project. It should be required to materialize a reliable and stable effluent treatment process and continuously examine the possibility of adoption of less costly equipments and materials provided by not only the Japanese technologies but also other alternatives with an eye to the local technologies in Maharashtra.

Figure 3-11 Provisional IRR Calculation

Figure 3-10 Economic Evaluation (IRR)


Oil Mill Project ReportSocio-Economic Advantage for the Area. Contd….

•Consultation with ANISH OIL MILL, Shendra Aurangabad and the local engineering company, are building a cooperative structure for materialization of the Project•After deciding the materialization of the Project as the project contractor of the Indian side, a consensus building for the implementation of the Project with the local counter party ANISH OIL MILL and the engineering company in Maharashtra should be required based on the result of the present study on the Project In concrete terms, a consensus should be built on the risk hedging method, the terms of CERs sharing (purchase and sales contract), the Project schedule, the division of the roles and the clear definition of respective responsibilities. In addition, for the materialization of the Project, an agreement should be required regarding the bearing part of the acquired credit risk and benefit which will result from both the operating performance of the Mill and the operation and maintenance management of the facilities.

•Risk study of the Project IRR

•The principal risks of implementing the Project are associated with the following three factors :

• (a) Effluent volume and COD concentration• (b) Methane reduction rate (COD elimination rate)• (c) Construction cost recovery

With regard to (b), in particular the decrease both in processing capacity and acquired CERs, which could have come along with an increase in inlet flow into the effluent treatment facilities, etc. could affect the IRR.


Oil Mill Project ReportCo-benefits Effects1.The sustainable development benefits of the Project are examined through 4 categories: economic, environmental, social and technical.•Sustainable Development Benefits - economic1.The organic material recovered from the decanter, and from the flocculation process, will have a high calorific value, and, after drying, will make a useful supplementary fuel for the Mill’s boiler. boiler operation, while there is the market for these organic by-products as fuel. users. The organic waste materials from the FFB treatment process will be consumed in the Mill as fuel for Substitution with the material recovered by the Project will enable the Mill to sell more of its waste material to outside This represents not only

an increase in the Mill’s income, but also an increase in the availability of sustainable biomass fuels for other users in the area. Further, the energy-consuming processes used in the Project will all be supplied by the Mill’s existing biomass co-generation system, all fit into this category.Sustainable Development Benefits – environmentalThe Project promotes the environmentally friendly POME treatment by efficiently separating solidwastes of the POME, which is a source of methane gas. In particular, the following effects areexpected by the Project.(a) Sustainable reduction and abandon of methane gas emission, which is one of the greenhousegases, would be achieved.(b) The final wastewater would have a sufficient quality for reusing as boiler water in the Mill, byefficiently treating the high organic concentration COD wastewater, which would contribute to thewater quality improvement of the nearby waterways and also to the water source saving.



(c) When the POME would be fully recycled in the Mill, the space currently occupied with the aerobicand anaerobic lagoons would be used for a more productive purpose.(d) The impact of offensive odor on both the surrounding environment and the employees of the Millwould be markedly neutralized.(e) The waste heat from boilers in the Mill would be used efficiently.(f) The incineration ash emitted from the palm oil mill would be used efficiently.

Sustainable Development Benefits – social

1.The use of the technology proposed by the Project indicates that a significant reduction in COD value can be achieved.2.Once the effectiveness of the Project has been demonstrated, the diffusion of the proposed technology will be expected not only within the Mill but also to the other nearby mills.3.Through the technology transfer, it is expected that the Maharashtrian engineers can be trained and then the employment and socioeconomic effects are also expected.4.In addition, the Project will enable Maharashtrian engineers to gain firsthand experience of operation of a flocculent-based wastewater treatment system, which should enable the spread of the technology to other applications both within the palm oil sector and in other related wastewater treatment fields.

Sustainable Development Benefits –technical

•A contribution to the improvement of the wastewater purification technology in the palm oil industry in Maharashtra should be expected.


Oil Mill Project ReportBackground …..

1. Entrepreneur Name : Prasanna V Joshi.

2. Educational Qualification : D.ME. BE (Mechanical)

3. Past Experience & its Relevance to the Project

• Have a vide experience of 13 years working and managing an Oil Mill in Maharashtra and abroad (Germany)

4. Interrelationship of Promoters:

1. Social wealth and good people network

5. Financial Resources

• Finance from:

• Self

• IDBI (INDUSTRIAL DEVELOPMENT BANK OF INDIA)

6. Creditworthiness

• Having good wealth and word of mouth credit in industrial area


Oil Mill Project ReportOrganisation & Management

1. Board of Directors / Partners: No partnersProfile of Directors / Organisation Chart / Profile of key

Executives


Oil Mill Project ReportLocation of the Project

Air port

Criteria / Reasons for Selection• Close to Raw Material Sources / Market• Transport : 1. Near to National High way2. Near to the National Air port• Type of Land – Non Agricultural • Soil Test Report • Approach (Close to NHW / SHW / Major Roads /

Rail Head)



National Highway

Location of the Project continued…


Oil Mill Project ReportTechnical Aspects & Technology to

be used1. Brief Introduction and Importance of the Project with

Reasons for Selection of Proposed Technology / Machines.

2. Machine Balancing3. Product

• Specification, its standard and other Qualitative Information

• Application• Distinctive Features & Edge Over Competitors

1. Detailed Design, Engineering & Execution2. Capacity

• Basis of Assessing Installed Capacity with Detailed Calculation Indicating Critical Machine on Basis of which Capacity Ascertained no of Working Hours & No. of Days.

• Reasons for particular capacity utilization



6. Technology Adopted and Its Comparison With AlternativeTechnology and Reasons for Selection

7. Technical Consultant, if any• Write up on Consultant

indicating Organizational setup, Experience and Scope of Work etc.

• Agreement With Consultant8. In case of Foreign Collaboration:

• Write up on Collaborator indicating their Activity, Size and Turnover.

• Past Experience • Basis of Selection• Collaboration Agreement• Technical Brochure, Balance

Sheet, Bank Reference Etc.

Chapter-V Technical Aspects & Technology to

be used Contd…



1. Power• Requirement & its

Availability• Source

2. Water• Requirement & its


3. Compressed Air• Requirement & its


Chapter-V Technical Aspects & Technology to

be used Contd…



1. Effluent Treatment

• Type of Effluent & Measures

Methodology survey

From the viewpoint of the small-scale CDM project, the existing applications of AMS-III.I / Version

07 and AMS-III.Y / Version 01 and a new application of AMS-III. New / Version New may be appropriate as methodology.

(a) “ Avoidance of methane production in wastewater treatment through replacement of anaerobic systems by aerobic systems ” AMS-III.I / Version 07

(b) ” Methane avoidance through separation of solids from wastewater or manure treatment systems”

AMS-III.Y / Version 01(c) “ Methane avoidance through chemical treatment of industrial

wastewater ” AMS-III. New /Version New

1. Manpower A minimum of five permanent employees: one accountant cum store keeper, two plant operators and one watch and ward person are required for the unit. Besides one skilled and 5 unskilled workers are required under the scheme.

1. Raw Material

Technical Aspects & Technology to be used Contd…


Oil Mill Project ReportManufacturing Process

Oil Extraction and Expression Methods: In order to get high quality edible oil, various processing

techniques are used. The process of obtaining oil from seeds involves the separation of oil from oil-bearing material by mechanical means, chemical means, etc. A typical oil extraction process is as follows:

Storage

Cleaning

De-hulling

Grinding or rolling

Heating

Pressing -- oil cakes

Refining -- impurities

Purified Edible Oil



Description of sequence operations:

Storage: The seeds, nuts, or plant tissue containing the oil must be properly

stored and prepared for extraction to maintain the high quality of the final product. If the oil bearing material is dry, it must be stored so that it remains dry for optimal extraction and quality of the oil. If the oil bearing material is wet- plant tissue, it should be processed for oil extraction immediately after harvest so that the storage time is kept to a minimum. Oils in the presence of water deteriorate rapidly, forming free fatty acids and rancid off-flavors.

Cleaning: After the oil bearing material has been taken out from storage, the

first step in preparing them for oil extraction is to clean them. Cleaning is done so that the oil is not contaminated with foreign materials and that the extraction process can proceed as efficiently as possible. During the process inspection of the seeds is carefully done to remove stones, sand, dirt and spoilt seeds. Dry screening technique is often used to remove all material that is over or under sized. Some times washing is also resorted to but it must be avoided as the plant tissue will have to be dried at a later stage.

De-hulling: During the process the outer seed coat of the oil seed is removed. A power operated de-huller is generally used for the operation. Removal of the outer seed coat is necessary as it does not contain oil and inclusion of it in the unit operations makes the oil extraction process less efficient. Some seeds such as groundnut can be shelled by hand. Some other such as sun flower seeds, are usually hulled in machines. Still others, like safflower and colza, cannot be shelled.



Grinding or rolling: Seed is not usually pressed whole, since oil extraction is more

efficient if the seed is in smaller particles. Herein lies the relevance of the grinding process. Grinding is the process for reducing the particle size. Small motor powered hammer mills are used for the unit operation. Another alternate process used for reduction of particle size is rolling the oilseeds to produce flakes for oil extraction. Many large scale commercial plants find this the most effective approach. With large oilseeds it may be necessary to grind the seed first, and then put the pieces through the flaking rollers.

Heating: It is the final step for preparing the raw material for oil extraction.

Heating leads to increased oil yield. Heating helps in killing those enzymes present in the plant tissue which have a deteriorating effect on oil quality. Moreover, if oilseed cake is to be used for feed or feed, heating is useful as it increases protein availability. Sometimes oil bearing material is pressed without being heated . Oil extracted in this way is called cold press oil.

Pressing: During processing, the conditioned oil seeds/ oil bearing material is

pressed using a lever press, hydraulic press or a mechanical expeller to remove the oil. Refining:

The process is used when lower quality feed stock is used for oil extraction. It helps in removing undesirable cloudiness, color and flavor from the extracted oil


Oil Mill Project ReportMarket & Demand

Net Availability of Edible Oil/Import/Actual Consumption:

There has been a persistent gap between demand and domestic availability of edible oils. The Government, with a view to avoiding scarcity of this item and consequential rise in prices, has been allowing import of edible oils. The net availability of edible oils from all domestic sources, actual consumption and import during the period from 1996-97 to 2001-02 are as under :

Legal and regulatory Framework Governing Oil Seed Processing Industry: Some of the important regulatory mechanism governing the oilseed processing industry in the country are as follows: 1.Edible Oils Packaging (Regulation) Order, 1998 2.2. Vegetable Oil Products (Regulation) Order, 1998 3. Solvent Extracted Oils, De-oiled Meal and Edible Flour (Control) Order, 1967 4. Pulses, Edible Oilseeds and Edible Oils (Storage) Control Order, 1977

These Control Orders provide for "in-process" surveillance in respect of the quality, packaging, labeling, production, oils used in vanaspati, etc. through regular inspection of the manufacturing processes, factory records, drawls of samples, etc.


Oil Mill Project ReportNeed for improved edible oil expellers:

The average oil recovery percentage in traditional oil ghanis is between 20-25%. Due to low recovery, wastage and process losses in the form of residual oil content in the de-oiled cakes are also quite high. The residual oil content in the oil cakes is to the tune of 12-14%. Drudgery during the unit operation is also an important factor which accentuates the problem. Storability and shelf life of the oilcakes is also of a shortened duration in case of ghanis. Therefore there is an immediate need for technological improvement of the ghanis so that oil recovery percentage and the process losses are minimized. Tapering screw type mechanical oil expellers suitably meet the requirement. The oil recovery percentage in case of mechanical oil expellers is around 35-37%. The residual oil content in the oilcakes is between 6-8%. The energy requirement for unit oil extraction is comparatively low in this case of mechanical oil expellers than traditional ghanis. Handling and storage of oilcakes obtained from mechanical oil expellers is much more convenient than the same obtained from traditional ghanis.

Development of small scale edible oil extracting units using improved mechanical oil expellers is yet to take a proper shape. In the absence of village level edible oil processing unit, the farmers have to travel great distances for selling the cleaned and graded rapeseed/ mustard seed. This leads to increased transportation and handling losses. Thus there is a need to develop suitable cleaning, grading, storing cum village level edible oil processing facility for bringing about noticeable development of the sector. Value addition and generation of gainful and sustainable employment opportunities are the other possible benefits arising out of this agro processing industry.


Oil Mill Project ReportCost of Project

• Investment components of an improved rapeseed/ mustard oil expelling unit:

The various investment components of a modern 240 MT/annum of rapeseed/mustard seed processing plant are as follows:

• Building Layout & Plants• The land requirement for establishing an improved rapeseed/ mustard oil

expelling unit will depend upon the installed capacity of the unit and the method of drying and conditioning of the seeds prior to the oil extraction process. Generally 0.50 acre of non agricultural land is required for establishing an improved rapeseed/ mustard oil expelling unit having an installed processing capacity of 240 MT /annum. The land should be with proper elevation. Low lying areas should be avoided, else proper land filling, compaction and consolidation should be done. Availability of suitable drainage facility, road linkages and communication facility should also be ensured. The layout of the edible oil processing plant should be done in a manner that helps in smooth operation of various unit operations in tandem to bring about optimal capacity utilization. Additional area will be required for sun drying and conditioning of the rapeseeds/ mustard seeds. The model tentative cost of land and land development charges has been considered at Rs. 2.50 Lakh ( Rs. 1.00 Lakh being the cost of the land and the remaining Rs. 1,50,000/- being the cost incurred for site development such as construction of fencing, internal roads and drainage system etc.)

Various civil structures required are as follows: 1. Raw material storage unit 2. Finished goods storage unit 3. Processing area 4. Office cum administrative space 5. Store room for oil cakes 6. Machinery spare parts store room 7. Toilet cum space requirement for 8. Miscellaneous space (Drying Platform) The size and civil cost of these structures depend on the production

capacity of the project . The civil structures and estimated cost for the model rapeseed/ mustard oil expelling unit is as follows: Prepared & Submitted By: Joshi P.V. 25

Oil Mill Project ReportCivil Structures

Plants & Machinery

Technology: ICAR institutes, State Agricultural Universities, research institutions have developed suitable technologies for extraction of edible oil using mechanical oil expellers. Some of the important institutes are CFTRI , Mysore, GBPAU, Pantnagar, TNAU etc. It is desired that technical assistance for installation and operationalization of the expellers and associated machinery is sought from well established manufacturing agencies having proven track record. Provision for training of machine operators and back up support may also be ensured.




Oil Mill Project ReportElectrical and other items: The various machines have to be connected to electrical motors of suitable power ratings for supplying power to them. Accordingly AC -3 Phase motors of different power ratings, varying from 1 HP to 10 HP will be required for powering the various unit operations of the improved rapeseed/ mustard oil processing unit. The total cumulative rating of all these motors will be in the vicinity of 20 HP. The cost of the electrical motors have been included along with the cost of plant and machinery. However, a cost of Rs. 50,000/- has also been considered for internal wiring and associated electrical work.

Miscellaneous fixed assets:

A cost of Rs. 1.50 Lakh under miscellaneous fixed assets has been considered for meeting the expenses for office furniture, office equipment, fixtures, firefighting and first aid equipment etc.

Utilities:

Power The total connected load for the aforementioned unit will be in the

tune of 20 HP or 14.92 kW. Accordingly a suitable power connection of 20 KVA is required Water

Water requirement by the unit is minimal and may be in order of 500 liters /day. The same will be mostly required for domestic consumption purpose. A suitable source of water supply may be arranged. Standby diesel engines, generator sets and other utilities Suitable standby power arrangement (DG sets of 20 KVA) may be made under the project. Accordingly a cost provision of Rs. 1 lakh has been made. Provision for fire fighting: Necessary provision for fire fighting equipment may be made while installing the unit. Provision for the same has been made under the miscellaneous fixed assets head.


Oil Mill Project ReportProvision for Insurance: Necessary provision for insurance may be made while installing the improved rapeseed/ mustard oil processing unit. Accordingly a provision for insurance @ Rs. 25,000/- per annum (lump-sum) has been made. Contingencies: A 5% contingency provision is made for unforeseen expenses. Organizational setup: A minimum of four permanent employees: one accountant cum store keeper, two plant operators and one watch and ward person are required for the unit. Besides one skilled and 5 unskilled workers are required under the scheme. Eligibility of borrowers: The borrowers can be proprietary and partnership firms, cooperatives, joint stock companies, corporations, APMC boards, growers associations , NGOs, PVOs etcRepayment: The repayment schedule has been calculated considering the tenure of term loan to be 9 years , inclusive of a grace period of 1 years. However, banks are free to decide upon the repayment schedule depending upon the net cash flow statements and availability of adequate coverage to repay the term loan installment. Interest rates for ultimate borrowers: Banks are free to decide the rate of interest within the overall RBI guidelines. However, for working out the financial viability and bankability of the model project, we have assumed the rate of interest as 12% p.a. Interest rate for refinance from I.D.B.I.: As per the circulars issued by I.D.B.I. from time to time Security: Banks may take a decision as per RBI guidelines



Results of financial analysis are as under:

The financial analysis of the investment on the improved rapeseed/ mustard oil processing unit having an installed capacity of 240 MT/ annum has been attempted and is placed from Annexures I to VIII. The project has a margin money component of 25% with the rate of interest on term loan and working capital as 12% p.a. and 13% p.a. respectively. For this project, the financial indicators of the investment are as under: Net Present Value @ 15% DF (NPW) = Rs. 8.98 lakh Internal Rate of Return (IRR) = 27.55 % Benefit Cost Ratio (BCR) = 1.05:1 Average Debt Service coverage Ratio (DSCR) = 1.61:1



Chapter-IX Cost of Project Contd…

1. Misc. Fixed Assets• Detailed Breakup of Electrical,

Workshop Equipments• Detailed Quotation of Suppliers• Comparative Statement &

Reasons of Selection with Techno- economic Justification

2. Preliminary & Pre-operative Expenses• Basis of various Expenses

3. Margin for Working Capital• Basis of Assessment• Justification for holding period• Justification for Margin

4. Contingency• Basis of Contingency Provision



Chapter-X Means of Finance

1. Justification of Proposed Means of Finance

1. Proposed Shareholding Pattern

1. Steps Taken to Raise the Stipulated Means

1. Status of Regularity Clearances & Legal Compliances

1. Detail of Investible Resources of Prompters



Chapter-XI Profitability & Funds Flow

1. Assumption• Capacity • Recovery from Raw Material

and Process Loss• Basis of Consumables• Basis of Repairs & Maintenance• Basis of Wages & Salaries• Basis of Power & Fuel Cost• Basis of Administrative &

Selling Expenses• Basis of Depreciation Rates• Basis of Interest on Working

Capital and Term Loan• Basis of Selling Price• Basis of Income-Tax Rates


Oil Mill Project ReportProfitability & Funds Flow contd…

PROFITABILITY CALCULATIONS

9.1 Production Capacity & Build-up

As against the processing capacity of 200 tonnes during 8 months, actual utilization is expected to be 60% in the 1st year and thereafter75%.

9.2 Sales Revenue at 100%

Depreciation 0.66 0.54 Profit before Tax 1.47 2.27Income-tax @ 20% 0.27 0.47Profit after Tax 1.20 1.80Cash Accruals 1.86 2.34Repayment of Term Loan -- 1.35 11.0 BREAK EVEN ANALYSIS

(Rs. in lacs)No. Particulars Amount(A) Sales 25.05(B) Variable Costs Raw & Packing Material 18.90Utilities (70%) 0.51Salaries (65%)0.51Stores & Spares 0.15Selling Expenses (75%) 0.94Admn Expenses (50%) 0.21Interest on WC 0.40 0.40 21.36(C) Contribution [A] - [B] 3.69(D) Fixed Cost 2.22(E) Break-Even Point = [D] ÷ [C] 60% 12.0 [A] LEVERAGES Financial Leverage


Oil Mill Project ReportChapter- XII Implementation Schedule

1. Detailed Implementation Schedule Indicating each activity and its estimated date of Completion

PERT (Program Evaluation and Review Technique) DiagramPERT planning involves the following steps:

1. Identify the specific activities and milestones.2. Determine the proper sequence of the activities.3. Construct a network diagram.4. Estimate the time required for each activity.5. Determine the critical path.6. Update the PERT chart as the project progresses.

Project progresses chart.

ES - Earliest Start timeEF - Earliest Finish timeLS - Latest Start timeLF - Latest Finish time


Oil Mill Project ReportSWOT Analysis

• Strengths

• Strengths of the Company & Project -Project Location is on the centre of the MIDC and Very close to the National highway and National Air port..Good Dealers Network, Latest Technology, Preparedness as per ISO9000:2008 Certifications etc.

• Weaknesses

• Weakness of the Company like RAW MATEIRLA available at remote area, so, contingency plan of material to be maintained.

• Opportunities

• Opportunities Available to the Company like Industry Growth, Future Expansion, Forward integration, Competitiveness due to quality upgrading and cost, Technology Upgrading etc.

• Threats

• Threats to the company like availability of raw material in in non monsoon days.


Oil Mill Project ReportAnnexure of Project Cost & Profitability

1. Details of cost of Project & Means of Finance Annexure-I - DETAILED PROJECT COST Model project on Rapeseed/ Mustard Oil Expelling Unit

Capacity @ 240 MT/ annum Annexure-II - MEANS OF FINANCE

Model project on Rapeseed/ Mustard Oil Expelling Unit Capacity @ 240 MT/ annum


Oil Mill Project Report (Rs. in Lakhs)

S.No. Particulars Rates Remarks

Installed capacity( Kg/ hr) 100

Days of operation per annum 300

No. of shift per day 1

Duration of a shift 8 hr

Capacity utilization

Year 1 of operation 65%

Year 2 of operation 70%

Year 3 of operation and onwards 75%

Average oil recovery percentage 36.00%

Wastage and other process losses 2.00%

Sales realization

Sale Price of Mustard oil 4600.00 Rs/ quintal

Sales price of oil cakes 650.00 Rs/ quintal

Cost of Production Cost price of Mustard Seeds 1500.00 Rs/ quintal Electricity and power charges 300.00 Rs/MT Repair and maintenance charges 5.00% of the cost of fixed assets at 100% capacity utilization

Accountant cum store keeper cost ( 1 person) 4000.00 Rs/ month

Cost of plant operators (2 nos.) 3000.00 Rs/ month

Security Guard (1 person) 2500.00 Rs/ month

Loading charges of raw material (oilseeds) 15.00 Rs/ MT/ annum at 100% capacity utilization

Loading charges of byproducts (oilseed cakes) 10.00 Rs/ MT/ annum at 100% capacity utilization

1.50 Rs/ kg

Fixed assets 16.86 Lakhs Depreciation ( on WDV basis)

On Building and other civil structures 5% of capital cost on building and civil structures

On Plant and machinery 10% of capital cost on plant and machinery

On miscellaneous fixed assets 10% of capital cost on other miscellaneous fixed assets

Interest Rates

Interest on term loan (%per annum) 12.00% being PLR+2.50%

Interest rates on working capital 13.00% Prepared & Submitted By: Joshi P.V. 38


1. Details of Cost of Land & Site Development

2. Details of Building & Civil Construction

3. Details of of Plant & Machinery4. Details of Misc. Fixed Assets5. Details of Preliminary &

Preoperative Expenses6. Details of Working Capital and its

Margin7. Details of Capacity Calculation &

Sales Realisation8. Details of Salary & Wages9. Details of of Power & Fuel



Annexures of Project Cost & Profitability Contd..

1. Projected Profitability Statement 2. Projected Cash Flow3. Projected Balanced Sheet4. Details of Repayment Schedule &

Interest on Term Loan.5. Deprecation Calculation : SLM &

WDV Method6. Calculation of Income Tax Payable7. Calculation of DSCR & Sensitivity

Analysis8. Key Financial Indicators.



Thank You


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Oil Mill Project Report Joshi PV

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