1 VEGETABLE OIL REFINERY

1.1 Introduction
Vegetable oil and fat resources are indispensable to mankind as a source of nutrient and
industrial raw materials. Crude vegetable oil obtained from various oil milling units is further
refined before use for edible purposes. Refined edible oil is a process where free fatty acids
are volatized, condensed and recovered simultaneously with vacuum de-colouring operation.
Sometimes, refining process is limited to simple physical treatment such as heating and
filtering in regard to refining of superior uality of crude oil. !enerally the cake in the oil is
separated by centrifuge, decolouring by active clay and steam deodorization at high
temperature in vacuum up to " mm. #g.
1.2 Objective
$he primary ob%ective of the model report is to facilitate the entrepreneurs in understanding
the importance of setting up unit of vegetable oil refinery, technology and financial
parameters of various components for preparation and submission of pro%ect proposal to
bank for sanction of long term loan. $his model report will serve as guidance to the
entrepreneurs on starting up such a new pro%ect and basic technical knowledge for setting up
such a facility
1.3 Ra !ateria" Avai"abi"it#
$he ma%or raw materials reuired are crude groundnut oil, crude sesame oil and crude
mustard oil. $he state of &' has abundant production of crude as well as refined vegetable
oils round the year. $hus procuring adeuate uantity of crude oil will not be a bottleneck.
(ther materials like phosphoric acid, citric acid, bleaching powder etc would be available
from the nearby trading centres.
1.$ !ar%et O&&ortunitie'
$he importance of edible refined vegetable oils has been appreciated and ambitious plan has
been chalked out to increase production of edible refined vegetable oils, including soya bean
oil, by the !overnment of )ndia in the previous *ive +ear 'lans. $he demand for refined
edible vegetable oils has increased in the consumer market. ,ith growing population,
increase in the disposable income and overall trend of consumerism, demand for edible oils
is shooting up year after year. $he country still imports large uantities of crude edible oil.
$he domestic production has gone up during last few years but there still e-ists a gap
between demand and supply which results in large imports. $hus a new vegetable oil refinery
has got good potential.
(roject (ro)i"e' * !( A+ro' G"oba" A+ri,#'te- (vt. Ltd.
Your (artner in A+ri*bu'ine''
1
1.. !anu)acturin+ &roce''
Special pre-treatment steps which are essentially a combination of de-gumming and blending
under special operating conditions, eliminate all impurities and render oil fit to be processed
at elevated temperature under vacuum. Various steps involved in refining are.
Super cleaning
Contobleaching and
/e-acidification
0ll these processes are very well standardized and practiced in the country since long. $he
average recovery is 123.
1./ (roduct'
)t is possible to refine edible oils from crude groundnut oil, sesame oil, mustard oil etc. )n this
pro%ect, these three crude edible vegetable oils have been considered for refining purposes.
1.0 Avai"abi"it# o) %no 1o and co-&"iance'
C*$R), &ysore has successfully developed the technical know-how. 0part from compliances
under '*0 0ct, registration under 0!&0R4 is advisable.
1.2 3a&acit# o) ("ant
$he installed production capacity of the proposed unit would be 5622 &$0.
1.4 (roject co-&onent and co't
&a%or components of the pro%ects and their costs are described in the table hereunder.
(articu"ar' 5nit 6t# 3o't7unit Tota"
LAN8 9 B5IL8ING $$..:
7and S& 822 96".22 ".22
Land 8eve"o&-ent
7and 0rea 822 5,"22.22 56.22
Bui"din+
(roduction B"oc%
'rocessing Centre S& :"2 ",222.22 5;."2
'ackaging <nit S& ;" ",222.22 :.;"
Storing <nit S& ;" ",222.22 :.;"
Contingencies 523 6."2
(LANT 9 !A3;INERY 4:.::
'lant = &achinery 7S 5 ;,"22,222 ;".22
Contingencies 623 5".22
!I,3ELLANEO5, FI<E8 A,,ET, 12.::
$otal &iscellaneous 0sset 7S 5 5,222,222 52.22
Contingencies 623 6.22
(RE*O(ERATIVE E<(EN,E, 23.:$
>stablishment 5 5,???,222 5?.??
'rofessional Charges 5 "22,222 ".22
Security /eposits 5 :92,222 :.92
TOTAL 1/4..$
(roject (ro)i"e' * !( A+ro' G"oba" A+ri,#'te- (vt. Ltd.
Your (artner in A+ri*bu'ine''
2
$he cost of the various components will depend on the location of the pro%ect. )tem wise
assumptions are as under.
1.1: ("ant and !ac1iner#
$he ma%or machineries reuired for the vegetable unit are super cleaning section,
contobleach section, deacidification section, steel structure, water cooling system, (il storage
tanks, boiler, water softening unit, storage tanks, pipes, accessories etc. $he total cost of
plant and machinery is Rs. 12 lakhs.
1.11 Bui"din+
$he main production block will cost around Rs. 6;."2 lakhs. $he building will be divided into
processing centre, packaging unit and storing unit. .
1.12 !i'ce""aneou' A''et'
0 provision of Rs. 56 lakhs would take care of all the reuirements.
1.13 (re"i-inar# 9 (re*o&erative E=&en'e'
0 provision of Rs. 6:.2? lakhs would take care of pre-production e-penses like
establishment, professional charges, security deposits etc.
1.1$ >or%in+ 3a&ita" Re?uire-ent
ITE!, Year 1 Year 3 Year .
R0, &0$>R)07 = '0C40!)@! 81.;1 5:8.5? 5:8.5?
S<@/R+ />A$(RS 599.5? 6"".92 6"".92
TOTAL 2...43 343.0$ 343.0$
!ARGIN 9:.18 18.?? 18.??
!(BF 515.1" 61".:5 61".:5
INTERE,T ON >3 65.55 :6.?8 :6.?8
1.1. !ean' o) Finance
E65ITY 3A(ITAL :8."13 4:.11
!OF(I ,5B,I8Y 6"3 "2.22 65.?53 .:.::
TER! LOAN
*)@0@0@C)07 )@S$)$<$)(@S 52.223 ?2.223 43.$1
-Payable half yearly Installments 5? 9.;2
TOTAL 5223 233..2
(roject (ro)i"e' * !( A+ro' G"oba" A+ri,#'te- (vt. Ltd.
Your (artner in A+ri*bu'ine''
3
1.1/ 3a'1 )"o 'tate-ent
(ARTI35LAR, Year 1 Year 3 Year . Year 0
,O5R3E, OF F5N8,
>B<)$+ C0')$07 - - - -
S<AS)/+
@>$ 'R(*)$ :2.66 ;5."6 9;.86 9?.89
C)@$>R>S$ 0//>/ A0C4D
/>'R>C)0$)(@ 55.:" 55.:" 55.:" 55.:"
'R>7)&)@0R+ >E'.,F( :.61 :.61 :.61 :.61
)@CR>0S> )@ $>R& 7(0@ - - - -
)@CR>0S> )@ A0@4 A(RR(,)@!S-,C 515.1" 61.": - -
TOTAL 23/.21 11../4 22.$/ 04..:
1.10 (rojected ba"ance '1eet
(ARTI35LAR, Year 1 Year 3 Year . Year 0
LIABILITIE,
>B<)$+ C0')$07 12.55 12.55 12.55 12.55
R>S>RV>S = S<R'7<S ?1.;9 52:.6? 59".:: 669.11
$>R& 7(0@ 89.;5 "1.15 ::.55 9.:5
A0@4 A(RR(,)@!S-,C 141.4. 24..31 24..31 61".:5
TOTAL $12..3 .$2..0 .23.2/ /12.02
1.12 (ro)itabi"it# 'tate-ent
(articu"ar' Year 1 Year 3 Year . Year 0
IN3O!E 5,52;.92 5,;2?.22 5,;2?.22 5,;2?.22
E<(EN8IT5RE 5,296.;? 5,95;.8? 5,965."? 5,96?."2
VARIABLE 1:".8: 5,?:?.?2 5,?:?.?2 5,?:?.?2
FI<E8 569.15 58:.?? 58;.5? 512.52
GRO,, (ROFIT ??.89 89.59 86.?9 ;1."2
(ROFIT BEFORE TA< C2.6?D :6.2? :5.26 :2.;?
RETAINE8 (ROFIT C2.6?D :6.2? :5.26 :2.;?
1.14 @e# Indicator'
@>$ 'R>S>@$ V07<> at current )nflation CRs. in lakhsD 3/2..0
)@$>R@07 R0$> (* R>$<R@ 3 3..:2
0V>R0!> /SCR 1../
AR>04 >V>@ '()@$ 3 22./:
'0+ A0C4 '>R)(/ C +>0RSD $.24
1.2: !an &oer Re?uire-ent
(ARTI35LAR, NO'.
A8!IN,TRATIVE ,TAFF
0dministrative (fficer 5
0ccountant 5
&arketing (fficer 6
,5(ERVI,ORY ,TAFF
Supervisors :
>OR@ER,
&achine (perator :
Semi Skilled 7abours 8
#elpers 56
(roject (ro)i"e' * !( A+ro' G"oba" A+ri,#'te- (vt. Ltd.
Your (artner in A+ri*bu'ine''
$
1.21 A''u-&tion'
(roject 9 Financin+
Contingencies on Auilding 523
Contingencies on >uipment 623
$erm 7oan ?23
Rate of )nterest on $erm 7oan 523
Subsidy Considered Sub%ect to ceiling 6"3
>-pected time of )nstallation &onths 52
&oratorium &onths 9
3A(A3ITY
Rated Capacity 'er 0nnum 823 of )nstalled capacity $'0 5622
@umber of (perational /ays /0+S :22
,orking #ours 'er day #rs 62
3A(A3ITY 5TILIAATION
+ear ) 9"3
+ear )) 123
+ear ))) 5223
,ALE, (RI3E
!round @ut (il ;2,222
&ustard (il ;6,222
OT;ER E<(EN,E
Commission 9.23
&arketing >-penses 6."3
(O>ER
Connected 7oad #' 12
8E(RI3IATION A, (ER 3O!(ANYB, A3T
A<)7/)@! :.:?3
'70@$ = &0C#)@>R+ 52.:?3
&)SC. *)E>/ 0SS>$S ;.2;3
70@/ = S)$> />V>7('&>@$ 5.9:3
!AINTENAN3E
A<)7/)@! 6."23
'70@$ = &0C#)@>R+ ?.223
&)SC. *)E>/ 0SS>$S :.223
70@/ = S)$> />V>7('&>@$ 6.223
1.22 ,ource' o) tec1no"o+# 7 !ac1iner#
$echnology of the pro%ect related material handling euipment is available with indigenous
companies and could be set up at competitive prices. &a%or suppliers are understated -
Sifter )nternational, 'lot @o. 8:, Sector 9, *aridabad-565229
$el. @o. 66:55"?-?"?2, *a-. 66:22:1
(saw 0gro )ndustries 'vt. 7td., (saw Comple-,
Gagadhri Road, 0mbala Cant.- 5::225, $el. @o. 691159;-:"?-"?;, *a-. 6911258
*orsberge 0gritech C)D 7td, !)/C >state, &akarpura, Vadodara
Chempro, >ngg. and Consultants, ?:, Sukhshine Comple-,
Sunrise 'ark, @r. /rive )n, 0hmedabad-:822"?. $el @o. 698"55:"F1252.
Container )ndustries, C-611, !hatkopar )ndustrial >state,
;6 7AS &arg, &umbai- ?22282
$he actual cost of pro%ects may deviate on change of any of the assumptions.
(roject (ro)i"e' * !( A+ro' G"oba" A+ri,#'te- (vt. Ltd.
Your (artner in A+ri*bu'ine''
.