A project report by BBA 3rd semester Students from Dr. K.N. Modi University on the topic Project report on Mustard oil Shree Shyam Udhoyg, Newai Rajasthan

1. Project Profile on Mustard
Oil Processing Plant
Presentation by : BBA 3RD SEMESTER

2. Introduction
Oil seed crop 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 varities of oil seeds.
Mustard oil is also one of the major seeds from which
edible oil is produced. In northern & central India . It is
medium of cooking food. Besides it is also used in
preparation of pickles. The mustard oil cake [by product
] is used as cattle feed.

3. MARKET
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 mustard oil have given new trust to its
market .
Due to consumption in household and in pickle
industries it appears to be good scope for
establishing mustard oil industry.

4. BASIS & PRESUMPTION
1. This project is based on triple shift and 300 working
days in a year.
2. The cost of machinery and equipment / material
indicated refer to a particular make and the prices
are approximately to these prevailing in the market
3. Interest on total capital investment has been @%
per annum.

5. BASIS AND PRESUMPTIONS
5. Minimum 40%of the total expenditure is required as
margin money.
6. Break even point has been calculated at the full
capacity utilization .
7. For smooth functioning of unit it is suggested that
unit should have a good stock of quality raw material
[mustard seeds]

6. IMPLEMENTATION SCHEDULE
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.

7. I ) arrangement of raw material including packaging materials .
j) Selection of market channel.
k) Miscellaneous work i.e., power and water connection

8. PRODUCTION DETAILS
 The seeds are to be dried in sun and then they are to be cleared
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 seed.
 The filtered oil is filled into the container , which are subsequently
sealed and labelled for marketing.
 On an average around 35% recovery of oil from the seed is
made.

9. FINANCIAL ASPECTS
FIXED CAPITAL-
A. LAND & BUILDING- BUILT UP AREA- 200 SQ. METERS. RENTED @ RS. 50,000/-P.M.
(PROCESSING HALL,STORE ETC)
B. ELECTRIFICATION, INSTALLATION, PACKAGING, TAXES, RS. 1.2 LAKHS
FORWARDING CHARGES ETC. @ 10%
C. OFFICE FURNITURE & FIXTURES RS. 8.00 LAKHS
D. PRELIMINARY & PRE-OPERATIVE EXPENSES RS. 0.80 LAKHS

10. WORKING CAPITAL (PER MONTH)
A. Personnel:
Designation No. Salary (Rs.) Total
(Rs.)
Manager 1 20,000 20,000/-
Accountant/Store-Keeper 1 15,000 15,000/-
Skilled Worker 1 10,500 10,500/-
Unskilled Worker 2 7,500 15,000/-
Peon 1 7,500 7,500/-
Total: 68,000/-
Perquisites @ 10% 6,800/-
Total: Rs. 74,800/-
Say Rs. 0.75 Lakh

11. B. Raw Material including packaging materials
(per month)
Items Qty. Rate (Rs. Pre MT) Amount (Rs. In Lakhs)
Mustard Seeds 32 MT 45,000/- 14.40
Empty Tins 750 Nos. 50/- 0.375
Empty bags,Chemical &
packing materials Total: Rs. 14.98 Lakhs
C. Utilities (per month) Rs. 0.80 Lakhs
Power, Electricity & Water charges

12. D. Other contingent expenses (per month):
1. Rent 50,000/-
2. Consumable Store, Repair & Maintenance, Postage,
Insurance, Telephone Bill, Advertisement, Transport etc. 10,000/-
Total: 60,000/-
Recurring Expenses (Per month):
a. Personnel Rs. 0.75 Lakh
b. Raw Material Rs. 14.98 Lakh
c. Utilities Rs. 0.80 Lakh
d. Other Expenses Rs. 0.60 Lakh
Total: Rs. 17.13 Lakh
Working Capital (3 months of recurring expenses) = Rs. 51.39 Lakh
Total Cost Of The Project:
a. Fixed Investment Rs. 18.25 Lakh
b. Working Capital for 3 months Rs. 51.39 Lakh
Total: Rs. 69.64 Lakh

13. Financial Analysis:
A. Cost of production (per annum):
1. Total recurring expenditure 205.56
2. Depreciation on machinery & equipment @10% p.a. 0.83
3. Depreciation on Office Furniture & Fixtures @20% 1.6
4. Interest on total capital investment @13% p.a. 9.05
Total: Rs. 217.04 Lakh
B. Turnover (per annum):
Item Qty/MT Rate(Rs.)/MT Amount(Rs. In Lakh)
Mustard Oil 150 MT 1,40,000/- 210,000
Mustard Oil Cake 250 MT 10,000/- 25
Total: Rs. 235 Lakh
Marketing Expenses (-) Rs. 3 Lakh
Net Sales: Rs. 232 Lakh

14. C. NET PROFIT Per Annum (Before Taxes):
(Turnover- Cost Of Production)=232. 217.04 = Rs. 14.96 Lakhs
D. NET PROFIT RATIO ON SALES (Per Annum):
Profit/annum X 100 = 6.44%
Sale Per Annum
E. RATE OF RETURN:
Profit/Annum X 100 =21.48%
Total Capital Investment

15. THANK YOU