Business plan for starting Castor Oil Production Plant

To start with any kind of business unit you need to craft an excellent business plan which
includes:

 List of licenses, registration

 Implementation schedule of project
 Raw materials required
 Machinery required
 Production process
 Estimated cost and
 Profit analysis

Statutory requirements for establishing Castor Oil Production Unit

 MSME registration
 GST registration
 ROC
 Registration of firm
 Shop Act License
 FSSAI License
 IEC Code
 Export License
 Fire and Safety
 ESI
 PF
 No Objection Certificate from pollution board
 Trade license from local municipal authority

Raw material required to start Castor Oil Production Unit

List of machinery required to establish Castor Oil production unit in India

  Seed Crushing Expellers Sets
 Support, Plant for and Fabrication
 Castor Oil Pipelines and Fittings
 Boiler, Pipelines, Chimney etc
 DG Set of 400 KVA
 Weigh Bridge 60 Tons
 Laboratory Equipments
 Fire Fighting Equipments
 Workshop Equip./Essential Spares
 Furniture/Fixtures/Computers etc.
 Erection/Commissioning etc.

Implementation schedule for Castor Oil Production Unit

 Purchase of Land – months

 Completion of Building – 3 months
 Ordering of Machinery – 4 months
 Delivery of Machinery – 2 months
 Term/Wkg Loan Sanction – 3 months
 Installation of Machinery – 4 months
 Commissioning of Plant – 1 month
 RM/Inputs Procurement – 1 month
 Manpower Appointments – 1 month
 Commercial Production – 1 month

Manpower requirement for Castor Oil Manufacturing Unit

 Technical Staff 5
 Adm. Staff 4
 Marketing Staff 4
 Labour 20
 Total 33
Manufacturing process of Castor Oil in Production Unit

Step 1: Castor oil seed comprises about 30%–50% oil (m/m) based on the variety. Castor
oil is extracted from castor beans by steps like solvent Manufacturing, mechanical pressing,
or by a combined action of pressing and Manufacturing. After harvesting, the seeds are kept
for drying so that the seed hull tends to split open, giving out the seed.

Step 2: The Manufacturing process starts after the removal of the hull from the seeds. This
can be completed mechanically using castor bean dehuller or by manual process. If your
budget is not a problem, the machine used for the de-hulling process is suggested.

Step 3: After dehulling, the seeds are sent for cleaning to remove the foreign materials like
stems, sticks, leaves, sand, or dirt particles. These materials are commonly eliminated using
a series of revolving screens or reels.

Step 4: Magnets used above the conveyer belts will separate iron. The seeds will now be
heated to make seeds harder that facilitate Manufacturing. In this process, the seeds are
placed in a steam-jacketed press to eliminate moisture, and this hardening process will
further make the Manufacturing step easy.

Step 5: The cooked seeds will be dried before the Manufacturing step starts. A continuous
screw or hydraulic press is implemented to crush the castor oil seeds which removes the
oil. The Manufacturing method is called prepressing.

Step 6: Pre-pressing mainly involves the use of a screw press known as the oil expeller. The
oil expeller is helpful to extract oil as it has a high-pressure continuous screw press.

Castor Oil Manufacturing Project Report – Fixed Capital

 Land and site development: Own

 Building and civil works: Rs. 5,00,000
 Plant and machinery: Rs. 16,00,000
 Misc. Fixed Assets: Rs. 2,30,000
 Preliminary and pre-operative expenses: Rs. 2,20,000
 Contingencies and escalation @ 5%: Rs. 1,18,000
 Working capital: Rs. 1,15,000
 Total: Rs. 27,79,000
Castor Oil Manufacturing Project Report – Working Capital
  Raw Materials: Rs. 1,00,000
 Power & Utility: Rs. 10,000
 Salaries: Rs. 74,000
 Packaging of oil: Rs. 1,22,000
 Receivables: Rs. 1,49,000
 Total: Rs. 4,58,000
Castor Oil Manufacturing Project Report- Total cost of Castor Oil Making Business

Fixed Capital + Working capital = Rs. 27,79,000 + Rs. 4,58,000 = Rs. 32,37,000.