Jatropha Oil Project Report, Business Plan

Introduction to Jatropha Oil Project Report, Business Plan: Jatropha curcas is a perennial plant that grows well in semi-arid areas of tropical and subtropical areas. It has gained importance recently by the scientific community, as the seeds are promising materials of vegetable oil for biodiesel production.

Jatropha’s capacity to grow on marginal land and in semi-arid conditions has encouraged its popularity as a “clean” biofuel source, as it does not demand valuable conditions like tropical rainforests or need agricultural land. Although now cultivated throughout the world (specifically in Northern India, Mesoamerica, semi-arid SSA, and Brazil)

Biodiesel is an alternative energy source made from renewable biological materials such as vegetable oils such as edible or non-edible oil and animal fats. Vegetable oils are commonly esters made of glycol with varying chain lengths and degrees of saturation. It may be seen that vegetable oil contains a considerable amount of oxygen in its particles.

A Guide to Jatropha Oil Project Report, Manufacturing Business Plan

Jatropha Oil
(Image credit: pixabay)

Constituents of Jatropha Oil: The plant which is commonly grown for obtaining jatropha oil is Jatropha curcas. The seeds are the main raw materials for oil extraction. Because of the toxicity of jatropha seeds, they are not consumed by humans. The major objective of jatropha cultivation is jatropha oil extraction.

Analysis of Jatropha curcus seed depicts that it has the below chemical ingredients.

  • Moisture: 6.20%
  • Ash: 5.30%
  • Fat: 38.00%
  • Carbohydrates: 17.00%
  • Protein: 18.00%
  • Fiber: 15.50%

The seed contains about 25-30% oil which includes about 21% saturated fatty acids and approximately 79% unsaturated fatty acids. The presence of cursin makes it inappropriate for human intake.

As the oil has a high saponification value and is thus widely used for soap preparation in few countries. Also, oil is employed as an illuminating agent in lamps as it burns with no smoke. It is also used as a substitute in kerosene stoves. Jatropha curcus oil cake has a high amount of Nitrogen, Phosphorous, and Potassium content and can be used for organic manure preparation. By thermodynamic conversion method called pyrolysis, useful products are prepared from the jatropha oil cake. The solid (char), liquid, and gaseous products are even obtained. The liquid is employed as fuel in furnaces and for boilers. It can be elevated to higher-grade fuel by a chemical method called transesterification.

Uses of Jatropha Oil: Jatropha curcas L. (Euphorbiaceae) is a multiple-purpose crop with its usage for biodiesel production and has medicinal benefits. It has been used for curing a wide spectrum of diseases related to skin, digestive, cancer, and respiratory and infectious diseases.

Business plan of Jatropha Oil Manufacturing Business

Before starting Jatropha Oil Manufacturing Business, you should consider the following points:

  • Market potential of Jatropha Oil
  • Presumptions and assumptions in Jatropha Oil Business
  • License, permissions and registrations required to start Jatropha Oil Manufacturing Business
  • Area or land required for starting Jatropha Oil Manufacturing Business
  • Raw materials required for Jatropha Oil Manufacturing Business
  • List of machinery required for starting Jatropha Oil Manufacturing Business
  • Manufacturing process of Jatropha Oil
  • Project economics of Jatropha Oil Manufacturing Business
  • Profit margin in Jatropha Oil Manufacturing Business

Market potential of Jatropha Oil

Market Potential of Jatropha Oil
Market Potential of Jatropha Oil (Image credit: pixabay)

As Jatropha oil has Biodiesel properties, it has huge demand in the market. We are aware of an increase in the prices of diesel and petrol and do not know how much it will increase in the future. So, in the coming days, biodiesel will have huge demand.

Presumptions and assumptions in Jatropha Oil Business

  • Number of Working Days in a year: 315 Days
  • Number of shifts in a day: 1
  • Hours in a shift: 8 hours
  • Plant capacity: Consider on Average production capacities of plant.
  • Raw material availability in the fields
  • Manpower: As per the project requirement
  • Rent estimate: On the basis of current market price of the area
  • Marketing areas: Local market and households
  • If project is funded, term loan would be: 60 – 80% of total investment
  • Moratorium period:  8 – 12 months
  • Repayment Period: 8 – 9 years

Below is the list of licenses, permissions, and registrations required for starting Jatropha Oil Manufacturing Business-

  • Firm registration
  • MSME registration
  • GST registration
  • ROC
  • PAN Card
  • Aadhar registration
  • Registration of firm
  • Shop Act License
  • FSSAI License
  • IEC Code
  • Export License
  • Fire and Safety
  • ESI
  • PF
  • No Objection Certificate (NOC) from pollution board
  • Trade license from the local municipal authority

Land required for starting Jatropha Oil Manufacturing Business

To start Jatropha Oil Manufacturing Business, you need a minimum area of 500 – 800 sq. mt. This specification is for establishing a small-scale unit.

Raw materials required for starting Jatropha Oil Manufacturing Business

In case if you miss this: Onion Oil Manufacturing Project Report.

Jatropha Tree
Jatropha Tree (Pic source: pixabay)

Jatropha oil is extracted from the seeds of the plant Jatropha curcas, a plant that is cultivated in the wastelands of India, and the oil is thought as an excellent source for biodiesel production. India is trying to lower its usage of coal and petroleum and depend on renewable sources to cater to the energy needs and hence enhancing Jatropha cultivation that is a significant step in India’s energy policy.

The machinery required to start Jatropha Oil Manufacturing Business

The machinery required for starting Jatropha Oil Manufacturing Business depends upon the methods of extraction you choose for.

The manufacturing process of Jatropha Oil

Some of the processes that are commonly employed for the extraction of jatropha oil have been included below.

Oil Presses: Oil presses are simple mechanical devices that could be operated using electricity or by manual force. Among the various oil presses that are employed in jatropha oil extraction, the utmost used presses famous are the Bielenberg ram press.

The Bielenberg ram press includes the traditional press method to obtain oil and prepares oil cakes along with soaps. It is a modest device that gives about 3 liters of oil for every 12 kg of seed input. Since the acknowledgment of jatropha for alternate energy sources (for instance, biofuel), jatropha oil extraction procedures have also expanded due to its reputation in the market. Since jatropha oil is the main component while producing biofuels, the progress of oil extraction ways and the customization of existing methods of extracting the oil have become vital.

Oil Expellers: Different types of oil expellers are used for the extraction of jatropha oil. The most popular among the expellers are the Sayari oil expeller (also known as the Sundhara oil expeller) and the Komet Expeller. The Sayari expeller is fuelled by diesel and developed in Nepal originally. It is now mainly used in Tanzania and Zimbabwe actively for jatropha oil extraction and preparation of oil cake. The prototype comprised many heavy parts developed from cast iron. The lighter version is made of iron sheets which were used in place of cast iron. The machines that are powered by electricity are even found. The Komet expeller is a single-screw oil expeller that is widely used for getting jatropha oil using the seeds meant for oil cake preparation.

Traditional Methods: Traditional methods by which the oil is obtained from the seeds through manual actions and simple methods in less developed regions.

Modern Concepts: Methods such as ultrasonication have been revealed to be operative in growing the percentage of jatropha oil which can be obtained by using a chemical process like aqueous enzymatic treatment. The optimum produce for such approaches has been revealed to be about 74%. Such research aims to identify methods to obtain a greater quantity of jatropha oil from the seeds which is not possible using the present steps.

Jatropha Oil Project Report/ economics of Jatropha Oil Manufacturing Business in India

Fixed Capital

  • Land and site development: Rs. 1,00,000
  • Building and civil works: Rs. 5,00,000
  • Plant and machinery:  Rs. 15,27,000
  • Miscellaneous fixed assets: Rs. 1,98,000
  • Preliminary and pre-operative expenses: Rs. 2,23,000
  • Contingencies and escalation @ 5%: Rs. 1,16,000
  • Working capital: Rs. 1,15,000
  • Total: Rs. 27,79,000

Working Capital

  • Raw materials: Rs. 88,000
  • Power and utility: Rs. 10,000
  • Salaries: Rs. 74,000
  • Finished goods: Rs. 1,34,000
  • Receivables: Rs. 1,49,000
  • Total: Rs. 4,58,000

The total cost required for starting Jatropha Oil Manufacturing Business 

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

The income per annum in Jatropha Oil Making Business 

Total income per annum: Rs. 36,25,000.

Profit in Jatropha Oil Manufacturing Business

Profit = Total Cost – Total Income = Rs. 36,25,000 – Rs. 32,37,000 = Rs. 3,88,000.

1 COMMENT

  1. Want to start an indegneous oil business is wise to use the same oil pressing machine for pressing other oils like Marula and ground nuts to press jotrpha oil ?

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