How To Start An Olive Oil Production – Making In India

Introduction on how to start an Olive oil production in India

In India, olive oil is mainly imported from countries such as Spain, Italy, and Turkey. Almost 90% of the total olive oil used is imported from the mentioned countries. Olive oil is majorly used in the food and beverage industry, cosmetics industry, pharmaceutical industry, and in the beauty care sector. The linear growth of these industries is likely to enhance the demand for olive oil. Olive oil is rich in monounsaturated fats and contains antioxidants such as vitamins D, E, A, and K, and Beta-carotene that aids in reducing bad cholesterol and avoids heart diseases. Because of these health benefits, it is used as one of the preferred cooking oil for Indian cuisines.

A step by step guide on how to start an Olive oil Production business

The Indian market for olive oil is experiencing substantial growth due to the rise in consumer awareness about the benefits of consuming olive oil and thereby strong economic growth. Also, the Western lifestyle is being majorly adopted by the Indian consumer. This is credited to be one of the main factors fuelling the India olive oil market. Apart from this, initiatives taken by the government to encourage domestic olive oil production and launching of effective farming techniques are estimated to provide lucrative chances for the development of the India olive oil market.

Marketing analysis of Olive oil production

The India olive oil market size was valued at $58.6 million in 2017 and is estimated to reach $127.5 million by 2025, growing at a CAGR of 9.9% from 2018 to 2025. Olive oil is a viscous liquid that is obtained from the fruit of the olive tree by pressing whole olives. Olive oil has a low smoke point of 240C and thus can be consumed raw. Olive oil consumption is mainly considered healthy as it is related to a lower risk of heart disease and various cancers including colorectal and breast cancer. Olive oil is also having rich content of monounsaturated fatty acid and antioxidants for instance polyphenols, chlorophyll, vitamins E & K, and carotenoids. The olive oil industry in India has seen considerable growth in the current years due to a rise in health-conscious by consumers. The olive oil market has become more competitive and price-sensitive because of the high potential and steady upsurge of the olive oil market. 

India olive oil key market segments:

By Type

· Virgin

· Pomace

· Refined

By Application

· Food

· Beverage

· Personal Care

· Pharmaceuticals

License, permission, and registration to start an Olive oil production business

 For beginning an olive oil production unit, you must get few license and registration approvals from various government organizations.

• Company registration with ROC
• Trade license
• SSI registration
• Factory license
• Food operator license 
• BIS certification
• ‘No Objection’ from the pollution control board
• AGMARK certification
• Fire license 
• FSSAI

Business Plan to start an Olive oil making or production unit in India

Any good business plan includes short-term (1-2 year) and long-term (5-year+) goals. The short-term section focuses on what it takes to get up and operations. The long-term plan lays out what must happen to sustain five years from now, meeting or exceeding your estimations for growth and profit.

The machinery required to start an Olive oil production business

The olive cold-pressed oil is a new type of Screw Oil Press Machine that needs pressing rings or pressing bars to obtain the oil from olives. Compared to numerous olive oil presses in the market, screw olive oil pressers can get olive materials steadily which can improve the total oil yield. Moreover, the oil obtained by our olive oil machine is of high quality, with vibrant color, and is having a good fragrance. Mainly, it is less costly when compared to the type of oil production machinery and will provide the same olive oil production output.

Olive oil cold press machine – Hydraulic oil press

Hydraulic oil press extracts oil from olives by the hydraulic principle. The whole oil extraction process is simple. If you check the screw oil press machine, the hydraulic olive oil press machine is expensive. The hydraulic oil press is also popular as an olive oil cold press machine.

Steps involved in extracting the cold-pressed oil from Olives

Below are the main things that can be seen in the extraction of olives by the cold press method. The extraction process of olive oil is explained in the next section. 

Cleaning

The prepared olives are placed on magnets to separate dirt and unwanted trace metal before de-hulled and sent through the particular cleaning machine to separate other foreign materials.

Grinding

The prepared olive oil seeds are placed over magnets to remove the dust and trace metal before de-hulled. To have a greater surface area for the step of pressing, the de-hulled seeds are grounded into a coarse meal are regular in shape by mechanized grooved rollers or hammer mills. Then this meal is heated to pacify the oil extraction step.

Pressing

During the oil pressing, some waste and impurities are also gathered with the oil, and they must be removed before the oil is packaged so that it can be used up. The heated metal is then placed slowly into a screw press, which enhances the pressure continued as the meal passes through a slotted barrel. Pressure gradually increases from 68,950 to 206,850 kilopascals as the oil is screwed out from the slots in the barrel, and next gathered.

Extracting additional oil with solvents

After the initial oil is gained from the screw press, the oil cake present in the press is refined by the using solvent extraction process to gain more yield. A volatile hydrocarbon (the famously known as hexane) dissolves the oil from the oil cake, and then the oil is removed by distilling the solvent out, and then the solvent is sent through the matter to be collected at the bottom. 

Removing solvent traces

90% of the solvent remaining in the extracted oil easily evaporates and it is collected for reuse. The residual solvent is collected by the use of the stripping column. The oil is heated by steam, and the lighter solvent is available on top, and when it condenses, it is collected later.

The product type segment of olive oil comprises; boiled olive oil, raw olive oil, and doubled boiled. The raw oil is many times used like core oils, in paints, caulking compounds, as tempering oil, etc., the boiled and doubled boiled olive oil is used in paints where the drying period is reduced.

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Investment to start a production of cold-pressed Olive oil in India

You can obtain the oil from seeds by use of some machinery, the cost of which have been listed below:

• The automatic cold-pressed oil machine is obtained at 2.5 lakh to 3 lakhs 

• Screw expeller comes in around Rs. 25,000 to Rs. 50,000

• Cooker and filter press are purchased at Rs. 60,000 to Rs. 80,000

• Storage tank for oil will be around Rs. 50,000

• If you require a sealing machine in the packaging of the oil packets it can be purchased at Rs. 3 lakh

• Employee’s salary and utilities will be about Rs. 1 lakh to Rs. 1.5 lakh

• Empty tins and bottles are bought at Rs. 20,000

• The expenditure for taxes, licenses, and registration process could be around Rs. 1.5lakh

• Marketing costs may be Rs. 50,000

• Any other miscellaneous expenses will be Rs. 40,000

If your oil plant is not located in your own space then the start-up investment will be high as you must spend rental costs according to the size of the plant. So, the complete capital for beginning a cold-pressed olive oil plant is about Rs. 7 lakhs to Rs. 9 lakhs mainly dependent on the size of the plant.

Profit in Olive cold-pressed oil making business

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You can gain good profits in the cold-pressed olive oil making business. You can get around 35 to 40% of profits here in the cold-pressed oil making business.

Marketing the your Olive oil product

The main aim of various marketing strategies is to find customers. The best oil is useless if you don’t have customers for it. In previous sections, you have seen the marketplace, competitors, and various needs and opportunities. Here is where you will know about utilizing those opportunities. How is your oil dissimilar from your competitors? What unique facts and advantages will your products have? Who could be your customers? Begin with some form of test marketing. It can be an inexpensive thing to get invaluable insight into what might work and what won’t. Some olive oil businessmen will buy oil made from the variety they intend to plant, pack it in the proposed container, and sell it at farmer’s markets, or do stress on groups, give it to relatives, etc. to get reviews about it. This should all be done before you purchase an acre of land or plant a single tree. You may be able to arrange a card table at your nearby market if you offer tastings of their other offerings. Try to be practical and don’t let your bias toward your product and further affect your test subject. This is a training experience for you. Why will the customer approach the oil they do? Is it a product attribute you hadn’t planned about, like some vibrant color or bottle cap/cork?

Once you are confident of a direction, check out the traditional marketing approach of the “four Ps” and stick on four factors: product, packaging, price, and promotion. A more trendy and critical addition to this list is “place or location” and of course distribution ideas. If you can design the right mix for each of these aspects, you’ll have a good opportunity to excel.

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