Introduction to Profit in Cold-Pressed Sunflower Oil (Cost to Start)
Sunflower, this name comes from its property of turning its head during the day to follow the sun to get ample energy for its growth. Each bright yellow and big flower head has about 1,000 seeds that are surrounded by the petals. Sunflowers can grow up to 10 feet high, and the roots of them will grow till 6 feet into the ground.
A Step by Step Guide to Profit in Cold-Pressed Sunflower Oil Business
In present times, the Sunflower oil which is sold in the market is mainly produced by the de-shelled pre-squeezing and leaching process. De-shelled pressing-leaching technology is the main aspect of the Sunflower oil production line which prevents the negative effect of over-refining, high temperature, the acid, and even alkali effects on oils so that the nutrients in the Sunflower oil can be sustained.
Importance of Cold-pressed Oils
Cold-pressed oils are extracted by pressing the oil seeds just as they are. This means that the nutritious value of the nuts or seeds is passed directly to the oil. But the shelf life is less as there are no preservatives are added. As the refining is not performed, they carry all the potential nutrition that is in oilseed or nut.
Therefore this indicates that all the vital natural vitamins and nutrients are the same. All-natural flavor and aroma are even available in these oils. Hence food cooked using these oils will enhance your taste buds. Make sure that the hot-pressed oils do have a great aroma as they have a synthetic fragrance. Also, the cold-pressed oil will be misty because it does not pass the refining process and the suspended particles are visible in it. The main thing here is even though the profit margin is not so great because the customers will purchase frequently, and getting regular customers means steady income, and hence profit will add up and be there over a longer duration.
Business Plan for Starting a Cold-pressed Sunflower Oil for Profit
The following are the simple steps that are highlighted to set up an edible oil manufacturing business:
Step 1: Market research for cold-pressed sunflower oil for good profit
It is very necessary to learn more about the business before starting a cold-pressed oil mill company. Check out the requirements of sunflower cold-pressed cooking oil manufacturing business in terms of technology, market, capital, and competition. Study the function strategies of previously established industries to have an idea of their operations.
Devise a strategy that comprises the proposed location, target market, investment, operational costs, and other economies. Get the required funding for your business. Before selecting a place for your edible oil processing plant, you must consider the market, the availability of raw materials, and the transport facilities. A good location is identified based on its proximity to the targeted market and raw materials available that will reduce the supply and transportation charges.
Step 2: Registration, license, and registration for cold-pressed sunflower oil manufacturing
Sunflower cold-pressed oil is used as a food product. And the business requires various registrations and licenses before beginning only. These requisites are mainly based on the location where you are planning to initiate the unit. However, it is suggested to contact local small business professionals and tax consultants.
• Primarily, you must define the management design of your organization. And then as per the design, register your business.
• Firstly, apply for MSME Udyog Aadhaar which is available as online registration.
• Then, the important trade license from the local municipality should be applied.
• The business comes under the food Industry category and requests consent from FSSAI which is also done online.
• Nowadays it is a must to apply for GST registration.
• Try to create a current account in any of the nearby banks.
• CLU-for land usage
• Shop act license
• Then it is important to apply for the BIS certification. The product must also conform to the PFA Act, guidelines.
• Moreover, it is essential to check the tax liabilities as well for this business.
Step 2: Design your business plant
Before beginning a new business, design a proper business plan which is similar to having a compass before leaving for any trip. This gives you insights on many aspects that you require when you tend to establish and run a business smoothly.
Step 3: The raw material needed for cold-pressed sunflower oil manufacturing
• You can obtain seeds by planting your Sunflower plants. However, it will take some time for you to grow the seeds from your end.
• You can also purchase that seed from the shopkeeper selling the seeds or from some farmers directly.
• Besides that you will require some empty tins and bottles.
Step 4: Area required for establishing the cold-pressed sunflower oil mill plant
The location of your business is another very essential factor that can make your business more prosperous. It’s best to choose the location which is near to your source of raw materials. For example, if you will be thinking about mustard oil production, you should set-up your extraction plant near to the mustard oil plantation. This will decrease transportation costs, which will be helping you to reduce the investment and contribute to your profit in turn.
Step 5: Arranging funds for starting the sunflower cold-pressed oil business
If you need money for purchasing material, products, and other things, then start finding sources. If your business plan is very effective by presenting it as a very promising and lucrative one, you will easily get investors or avail loans from banks or other sponsoring institutions.
Subsidies and Loans Available for Cold-pressed Oil Extraction Business
Below is the list of public sector banks that will have subsidies for the cold press oil extraction process. These include State Bank of India, Bank of Baroda, Canara Bank, Punjab National Bank, Bank of India, State Bank of Bikaner & Jaipur, Andhra Bank, Tamil Nadu Industrial Investment Corporation, Small Industries Development Bank of India known as SIDBI, The National Small Industries Corporation Ltd., National Bank for Agriculture and Rural Development called as NABARD. These banks will provide some loans or subsidies on the machinery cost available.
Step 6: Machinery used for cold-pressed oil
The sunflower oil press is a new type of Screw Oil Press Machine that utilizes the pressing rings or pressing bars to derive the oil out from sunflower seeds. Compared to other sunflower oil presses in the market, screw sunflower oil pressers can get sunflower materials consistently, which can optimize the total oil yield. Additionally, the oil extracted by our sunflower oil machine is of good quality, with bright color, and is full of fragrance. Our sunflower oil press machine has a strong capacity, stable, and is effective in performance. Most notably, it is cheap than another type of oil production machinery but will provide the same sunflower oil production output.
Sunflower Oil Cold Press Machine – Hydraulic Oil Press
Hydraulic oil press extracts oil from oilseeds by the use of the hydraulic principle. The whole oil extraction process can be easily seen. If you compared the screw oil press machine, the hydraulic sunflower oil press machine is very costly. The hydraulic oil press is also famous as a sunflower oil cold press machine.
Step 7: Steps involved in extracting the cold-pressed oil from sunflower seeds
Below are the steps involved in the extraction of sunflower oil through the cold press method.
The Extraction Process of Cold-pressed Sunflower Oil
The extraction process of sunflower oil is mentioned briefly in the below section.
The prepared Sunflower oil seeds are passed over magnets to remove dirt and unwanted trace metal before de-hulled and passed through the particular cleaning machine to remove other foreign matters.
Sunflower seeds contain around 20%-30% hulls from the oil-type. Those hulls are sometimes separated before oil extraction to ensure the quality of both oil and Sunflower meal. When the seed has some moisture content of about 5% after cleaning then de-hulling is done. The usual process includes cracking the seeds by the mechanical action of a centrifugal or pneumatic sheller that is also done by abrasion. Then the resulting mixture is winnowed to remove the hulls from the kernels.
The prepared Sunflower oil seeds are sent over magnets to separate the dirt and trace metal before de-hulled. For more surface area to be pressed, the de-hulled seeds are grounded into a coarse meal of proper uniformity by mechanized grooved rollers or hammer mills. Then the meal is heated to speed up the oil extraction step.
During the oil pressing, some waste and impurities are also emitted with the oil, and they should be separated before the oil so that is can be edible. The heated metal is then fed slowly into a screw press, which upsurges the pressure continued as the meal passes through a slotted barrel. Pressure generally rises from 68,950 to 206,850 kilopascals as the oil is screwed out through the slots in the barrel, and is collected back.
Extracting additional oil with solvents
After the initial oil is collected back from the screw press, the oil cake lasts in the press can be refined using solvent extraction to get a high yield. A volatile hydrocarbon (the popularly known as hexane) dissolves the oil out of the oil cake, and then the oil is collected by distilling the solvent out, and then the solvent passes from the matter to be collected at the bottom.
Removing solvent traces
90% of the solvent present in the extracted oil simply evaporates and it is gathered for reuse. The remaining solvent is collected by the use of the stripping column. The oil is heated by steam, and the lighter solvent floats to the top, as it condenses, then it is collected.
Refining the Sunflower oil
Refining of oil is done to remove odor, color, and bitterness. First, the oil is heated at temperatures ranging from 40°C and 85°C. Then soap forms from the undesired fatty acids and the alkaline additive, and generally, it is separated by a centrifugal process. The oils are degummed by treatment with hot water at temperatures between 85°C and 95°C or using acidified water. This precipitates out the majority of the gums mainly the phosphatides. Then centrifugation is done to separate the dregs.
The final step involves deodorizing the oil bypassing the steam over hot oil placed in a vacuum at temperatures between 225°C and 250°C to distill the volatile and odor components from the oil. This allows the volatile compounds which are responsible for the taste and odor to evaporate from the oil. One percent of citric acid will be added to the oil to inactivate any trace metals present, hence avoiding oxidation within the oil, thereby increasing the shelf life of the oil.
Packaging the Cold-pressed Sunflower Oil
After finishing all the process of refining Sunflower oil, the pure oil is measured and packed in hygienic containers, and the usual ones are bottles for domestic sale, glass bottles, or cans for export.
The Cost of Sunflower Oil Manufacturing
You may also check this: Poultry Feed Mill Business Profit In India.
The cost of starting a Sunflower seed oil factory is mostly associated with aspects such as oil mill capacity, equipment selection, process design, factory layout, automation degree of the production line. A major segment of the startup capital will be spent on leasing or obtaining a facility as well as for purchasing oilseed oil extracting and processing equipment. It is also estimated to use the capital on the purchase and servicing of distribution trucks, salaries of your employees, and spending on utility bills.
Investment for Manufacturing Cold-pressed Sunflower Oil Business
You can extract the oil from seeds by using below equipment and cost to start:
- The automatic cold-pressed oil machine costs 2.5 lakh to 3.5 lakhs
- The screw expeller will cost Rs. 25,000 to Rs. 50,000
- The cooker and filter press will cost Rs. 60,000 to Rs. 80,000
- The storage tank for oil will cost up to Rs. 50,000
- If you want a sealing machine for packing the oil packets it will cost up to Rs. 3 lakh
- Employee’s salary and any payment of bills will cost up to Rs. 1 lakh to Rs. 1.5 lakh
- Empty tins and bottles will cost Rs. 10,000
- For taxes, the license and registration process will cost up to Rs. 1lakh
- Marketing expenses will cost up to Rs. 50,000
- Any other miscellaneous expenses will include up to Rs. 30,000
If your oil plant is rented then the start-up investment will include that too as per the size of the plant. So, the total investment for starting cold-pressed sunflower oil plant is Rs. 6 lakhs to Rs. 8 lakhs depending upon the size of the unit.
Profit Margin in Sunflower Cold-pressed Oil Making Business
You can earn good profits in the cold-pressed sunflower oil making business. You can make 35 to 40% of profits in coconut oil making business. If you use 1 kg of sunflower seeds you will get 450 ml of oil. The seed-cake obtained after extracting the oil has high demand in the market as it is rich in nutrients. So, the seed-cake is also used as a fodder. The oil is gathered in a storage tank and next is tested, if it’s found unpolluted and has passed all the conditions, then the oil is sent to the packing stage for packing and distribution. When the oilseeds are processed the waste is accumulated and is called pressed cakes. Oil Cakes usually have little oil in them and they are used as animal feeds through a method called distillation.
Marketing Strategies for Promoting your Sunflower Cold-pressed Oil Business
You can sell your cold-pressed sunflower oil in local markets or you can even sell in the online stores. You can also register in B2B websites and B2C websites in online markets to promote cold-pressed oil products.
You can also sell your products in supermarkets, small stores in shopping malls, etc. Advertise about your product through social media to get a huge number of clients in this way you can increase and promote your business. There are very limited cold-pressed sunflower oil manufacturers in India, but the demand for encouraging the new product is also high because of its properties. So, you need not worry about the market. You can sell your product based on the cold-pressed sunflower oil wholesale price in India.
That’s all folks about profit margin in the extraction of Sunflower cold-pressed oil business in India. In case if you are interested in this: Sunflower Farming.