Mustard Oil

Project cost: 86 lakh  

Uploaded on : September 2009

Product and its Applications

The edible oils of vegetable origin are the most important sources of cooking oil. Mustard oil accounts for almost 40% of the total edible oil output in the country. Mustard is produced all over northern India and substantial acreage is under it in Rajasthan (29 lakh tonnes), Haryana, MP and Gujarat (20 lakh tonnes together), UP (8.8 lakh tonnes) and Punjab .

Natural unrefined mustard oil extracted through cold process is quite pungent. The consumers of traditional product prefer pungent oil. Till now the extraction of pungent oil could be possible only by Rotary Ghani due to mustard seed moisture range of 10-12%, low temperature of extraction in wooden bowl wherein the pungent principle - allyl isothiocyanate does not evaporate. However, the expeller made of metallic components and high compression ratio raises the seed temperature up to 80-100°C resulting in loss of pungent principles. The "Modern" oil expeller provides high pungency mustard oil by low temperature crushing through incorporation of a water cooled chamber and processing at critical moisture levels of oilseed.

Market Potential

Mustard oil is the popular cooking oil in northern, central, eastern and north- eastern region. There exists a large scope to set up a number of small scale mustard expellers for local production of high pungency oil, which fetches a premium price.

Basis and Presumption

  • The unit proposes to work at least 300 days per annum on single shift basis.
  • The unit can achieve its full capacity utilization during the 2nd year of operation.
  • The wages for workers is taken as per prevailing rates in this type of industry.
  • Interest rate for total capital investment is calculated @ 12% per annum.
  • The entrepreneur is expected to raise 20-25% of the capital as margin money.
  • The unit proposes to construct own building.
  • Costs of machinery and equipment are based on average prices enquired from machinery manufacturers.

Implementation schedule

Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below:

Scheme preparation and approval 01 month
SSI provisional registration 1-2 months
Sanction of financial supports etc 2-5 months
Installation of machinery and power connection 6-8 months
Trial run and production 01 month

Technical aspects


The unit can be set up in oilseed producing regions or near the consumption centres. However, availability of power and road connectivity should be ensured.

Salient Features of Process / Technology

The seeds are cleaned to remove dust, dirt and foreign particles. These are cured to bring the moisture level of 10-12% and passed through oil expeller. The oil cake is conveyed automatically and pressed to achieve maximum oil recovery, which is about 35% depending upon he variety and quality of seed. The oil is filtered and filled into 1 kg Pet bottles or 16 kg tins.

Quality Control and Standards

As per BIS/PFA requirements

Pollution Control

There is no major pollution problem associated with this industry except for disposal of waste which should be managed appropriately. The entrepreneurs are advised to take "No Objection Certificate" from the State Pollution Control Board.

Energy Conservation

The fuel for the steam generation in the boiler is coal or LDO depending upon the type of boiler. Proper care should be taken while utilising the fuel for the steam production. There should be no leakage of steam in the pipe lines and adequate insulation should be provided.

Production Capacity

Quantity 300 tpa
Installed capacity 1200 kg/day
Optimum capacity utilization 70%
Working days 300/annum (3 shifts)
Manpower 22
Optimum capacity utilization 70%
Motive Power 8 kW
Water 10 kL/day

Financial Aspects

Fixed Capital

Land & Building Amount (Rs. lakh)


Amount (Rs. lakh)

Land 400 m 2 02.10
Built up area 250 m 2 12.90
Total cost of land and building 15.00

Machinery and Equipment Amount (Rs. lakh)



  • MERADO' Oil Expeller () cap 1 tpd in 3 shifts) with 7.5 HP motor, starter
  • Filter press with pump and filter cloth
  • Baby boiler, cap 200 kg steam
  • Shaker screen with blower
  • Weighing scale
  • Shrink wrapping machine for PET bottles
Erection & electrification of machinery & equipment @10% cost 00.70
Office furniture & fixtures 02.30
Total 10.00

Pre-operative Expenses Amount (Rs. lakh)

Consultancy fee, project report, deposits with electricity department etc 01.00

Total Fixed Capital Amount (Rs. lakh)

(9.1.1+9.1.2+9.1.3) 26.00

Recurring expenses per annum

Personnel Amount (Rs. lakh)



Salary Per month


Factory Manager 1 10,000 01.20
Supervisory staff 2 8,000 01.92
Office Assistant 2 7,500 01.80
Technician 0 6,000 00.72
Skilled workers 3 4,000 01.44
Unskilled workers 8 3,000 02.88
Perquisites @15 %     01.24
Total     11.20

Raw Material including packaging materials Amount (Rs. lakh)


Qty (t)

Rate/t (Rs.)

Amount (Rs. lakh)

Mustard seeds 860 23,000 197.80
Pet bottles with cap 3 lakh   4.80 each 014.40
Shrink wrapping rolls LS   LS   000.48
Labels 3 lakh   0.90 each   002.70
Cartons cap. 24 bottles 12,500 32 each 004.00
Gunny bags LS LS 001.12
Total LS LS 220.50

Utilities Amount (Rs. lakh)


Amount (Rs. lakh)

Power 55000 kWH 02.80
Water 3000 kL 00.20
Fuel for boiler 00.80
Total 03.80

Other Contingent Expenses Amount (Rs. lakh)


Amount(Rs. lakh)

Repairs and maintenance @10% 00.77
Consumables, filter cloth & spares 00.93
Transport & travel 00.80
Publicity, postage, telephone 01.00
Insurance @1% 00.20
Total 03.70

Working Capital Amount (Rs. lakh)

Recurring expenses for 3 months 60.00

Total Capital Investment Amount (Rs. lakh)

Fixed capital (Refer 9.1.4) 26.00
Working capital (Refer 9.3) 60.00
Total 86.00

Financial Analysis

Cost of Production (per annum) Amount (Rs. lakh)

Recurring expenses (Refer 9.2.5) 219.70
Depreciation on building @ 5% 000.65
Depreciation on machinery @10% 000.85
Depreciation on furniture @ 20% 000.48
Interest on Capital Investment @12% 010.32
Total 232.00

Sale Proceeds (Turnover) per year Amount (Rs. lakh)



Rate (Rs.)

Amount (Rs.lakh)

Mustard Oil in 1 kg bottle 300   18,000 216.00
Mustard cake 540 10,000 054.00
Total 270.00

Net Profit per year


= Sales – Cost of production
= 270– 232
= Rs. 38 lakh

Net Profit Ratio


Net profit X 100


38X 100


= 14 %

Rate of Return on Investment


Net profit X 100

Capital Investment

38X 100


= 44 %

Annual Fixed Cost Amount (Rs. lakh)

All depreciation 01.98
Interest 10.32
40% of salary, wages, utility, contingency 07.50
Insurance 00.20
Total 20.00

Break even Point


Annual Fixed Cost X 100

Annual Fixed Cost + Profit

20X 100

= 34.5 %

Addresses of Machinery and Equipment Suppliers

  • Nandy Eng. Works
    139, Benaras Road
    Howrah-711 106
  • Azad Eng. Co.
    C-83, B.S.Road Industrial Area,Ghaziabad-201 009
  • Guru Tegh Eng. Co.,G.T.Road, Millerganj, Near Fire Brigade
  • Punjab Engg. Works, 32, Ram Krishna Samadhi Road
    Kolkata – 700 054
  • S.P.Engg. Co.
    79/9, Latouche Road ,
    P.B. No. 218,
    Kanpur – 208 001
  • Lyallpur Engg. Co.
    G.T.Road, P.B. No. 8,
    Ghaziabad (U.P.)
  • Delhi Iron and Steel Co. Pvt. Ltd.
    Ghaziabad (UP)
  • Swastik Engg. Works,
    198, Panjara Pole Road
    Mumbai – 400 004
  • Parekh Machine Tools
    5, Khetra Das Lane ,
    Behind Broadway Hotel
    Kolkata-700 012
  • Mecpro Heavy Eng Ltd.
    610, Somdutt Chambers II
    Bhikaji Cama Place ,
    New Delhi – 110 066
  • Chemical Construction International (P) Ltd.
    J-12, Basement, Saket, New Delhi – 110 017
  • Japro International (P) Ltd.
    Flower Valley Complex
    Tower No. T-2, First Floor
    Off Eastern Express Highway
    Thane (West) – 400 601
  • Muez-Hest Process Technologies (P) Ltd.,
    231, Blue Road Industrial Estate,
    New Cable Corporation, Western Express Highway ,
    Borivalli East, Mumbai – 400 066
  • Om Sons International,77-A, Industrial Estate,
    Ludhiana - 141 003.
  • Jindal Expeller Industries
    58-B, Industrial Estate, Miller Ganj,
    Ludhiana-141 003.
  • Veendeep Oiltek Exports
    A-67, MIDC, Taloja,
    Navi Mumbai- 410 208.
  • Troika Processes Private Limited, Mumbai
    607, 6th Floor, Embassy Centre, Nariman Point,
    Mumbai- 400 021.
  • Karnataka Iron Works, Mangalore
    Balmatta Road ,
    Karnataka- 575 002.
  • Servotech India Limited, Mumbai
    Office No. 8, a Wing, ''b'' Building, Shiv Sagar Apartments Ram Baug,
    S. V. Road, Neat Vijay Sales, Borivali [ w ],
    Mumbai- 400 092
  • Sunman Engineers India , Faridabad
    41B, New DLF Industrial Area,
    Faridabad - 121 003.
  • Vinco Industries
    47 - b, Industrial Estate,
    Ludhiana- 141 003.
  • Glamptech Agro Process Pvt. Ltd
    105, Charisma Centre, 19th Road, Chembur,
    Mumbai- 400 071
  • Sethia Oil Industries Limited, 2, Exchange Place ,
    Kolkata- 700 001
  • Aum Consultancy Pvt. Ltd
    Odyssey 2nd Floor, Gandhi Nagar, Adayar,
    Chennai- 600 020.
  • Heiza Chem Engineers Private Limited
    P-29, Sukanta Sarani,
    Kolkata-700 008.
  • Ritika Projects International, New Delhi
    B-365, C R Park,
    New Delhi- 110 019

Other Special Features

A careful selection of product mix is necessary based on the local market demand and availability of raw materials. The facilities can also be utilised to manufacture oil from copra, groundnut, sunflower etc. for fuller utilisation of capacity.

Contact for more information

Information Manager
TIMEIS Project