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Project Report on De-Hulling of Sesame Seeds

Project Report on De-Hulling of Sesame Seeds Business Unit Establishment

Introduction to sesame seeds

Sesame seeds have a crazy taste and a fragile texture, seen majorly in many Asian plates. They seem to be common ingredients in sesame seed paste and found in popular Middle Eastern sweet know to be halvah. Sesame seeds are grown throughout the year. Sesame seeds are a remarkable source of copper, manganese, also abundant in magnesium, molybdenum, calcium, iron, phosphorus, zinc, as well selenium. India harvests a wide range of sesame variations with diverse grades each peculiar to the province. Sesame is harvested two times a year. 

A step-by-step guide to Project Report on De-Hulling of Sesame Seeds

Project Report on De-Hulling of Sesame Seeds
Project Report on De-Hulling of Sesame Seeds (Image credit: pixabay)

Uses of dehulled Sesame seeds 

Sesame is chiefly seen as a food ingredient in whole, broken, shelled, crushed, powdered, and paste forms. Sesame seeds include the highest oil when referred to any other oilseed to an extent of 50% or even more. The unique abilities of sesame oil are resistance to rancidity and stability and, extended shelf life because of natural antioxidants. Other than for cooking and salad dressing, the oil is a vital ingredient for industries involved in the manufacture of soaps, as healing oil for pharma and lubricants with additional use in cosmetic and skincare segments. Sesame seeds are high in protein content that accounts for 25% of their weight. Sesame meal comprises 35 to 50% protein and best applied as feed for poultry and livestock. 

Market analysis of Dehulled Sesame Seeds

The past rates of 2013-2016 and the future price of 2016-2021 are projected according to the supply-demand relative, as well as viewpoints and forecasts. Besides production and sales records, the report affords data on distributors and purchasers, giving readers an idea of the supply chain and sales particulars of Sesame Seeds.

Market potential of Dehulled Sesame Seeds

Sesame is grown over an area of about 74 lakh hectares across the globe with an annual yield of about 40 lakh tonnes and a yield of 535 kg/hectares. India and Myanmar are the chief sesame growing regions accounting for about 40% of the global sesame yield. Among oilseeds, sesame ranks to be 2nd after groundnut as far as exports of oilseeds are considered. More than 40% of the sesame seeds are found to get exported annually. India is the largest exporter of sesame seeds around the globe, which is 25% of international trade.

A step-by-step guide to starting De-hulled sesame seeds business unit

Sesame seeds
Sesame seeds (pic source: pixabay)

Below is the list of requirements to start De-hulled sesame seeds business

License, permissions, and registrations required to start De-hulled sesame seeds business

For starting a de-hulled sesame seeds production unit, you should get several license and registration approvals from different government organizations.

  • 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.
  • 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.
  • AGMARK certification
  • Fire license
  • Mandi Act
  • Labor Laws such as the following: ESIC, EPFO, etc. 
  • CLU – for land
  • Electricity Bills
  • FSSAI: The Food Standards and Safety Rules, 2011, and rules made under IS 544: 1968 permit the inclusion of antioxidants in de-hulled sesame seeds production for an increased shelf life of the oil.


Raw materials required to start Dehulled Sesame Seeds

Of the average (2009/10–2013/14) area under production for oilseeds in India (around 270 lakh hectares), Sesame stands as 4th with about 19 lakh hectares, this is around 7% of the total. So availability of sesame is in abundance

Manufacturing process of Dehulled Sesame Seeds

Sesame seeds are covered with a thin husk or shell which has to be separated using a process called dehulling. The hull comprised oxalic acid and in-digestive fiber. Oxalic acid lowers the biological utilization ratio of Ca in Food and impact the taste. After dehulling, oxalic acid can decrease from 3% to 0.25% in sesame seeds, which improves the protein digestibility significantly. So, dehulling of sesame seeds is the requirement of enlarging the application of sesame in the food sector. Sesame seeds are also an outstanding store of unsaturated fatty acids and phytosterols. In Dry dehulling process, the sesame seeds dried after cleaning at a specific level, which can dehydrate the moisture in the hull fastly and be brittle. Then by using the clash dehulling method, the hulls are removed from sesame seeds. The dry process is short in technology line, few investments in equipment but low at a dehulling rate, easily get yellow or brown even burnt at high temperature. So, for commodity use, the dry method is not used in processing sesame seeds, generally, only for little quantity self-use in some foodstuff factories.

The process of dehulling comprises hot lye treatment, cleaning, and grinding, removal of the skin and pigments, complete washing and drying. The dehulled seed is processed to obtain high-grade oil. The cake is further processed to obtain the residual oil and protein-rich meal. This sesame cake flour being rich in protein has numerous uses in food preparations. The de-hulled sesame seeds and flour have perfect potential in the international and domestic markets.

Process flow of complete Sesame Dehulling unit

Soaking: Soaking is performed to make a hull of sesame seeds sopped up water to enlarge for peeling off from seeds. The step use lye, soaking raw sesame seeds at a particular temperature, which mend the speed of infiltration ratio of water into hull, lessens the soaking time up to 30-40 minutes from the previous 7-8 hours. At the same time, lye deteriorates pigments in the hull for the whiteness of sesame seeds.

Dehulling: The step makes use of a machine called a vertical huller to perform a relative movement among the seeds. Due to soft friction between sesame seeds, the hull gets detached.

Separating: It is the key method in sesame seed production, affecting the final production of the finished product. Usually, keep the mixture of hulls and seeds into the water tank, by varied buoyancy of hulls and seeds, fish out the hulls manually. Though it is not a thorough process by buoyancy. So the project uses the separation method by various geometrical sizes of hulls and seeds. Namely, use best soaking machinery to soften hulls, escalate crush rate of hulls but do not impact the intact rate of seeds while hulling, then use hulls smaller than seeds, remove the hulls by water flow with a machine called a subsidence-type automatic separator. The seeds are caught. The separation of hulls and seeds prospered. 

Drying: The methods need a single chamber fluid bed drier. The sesame seeds float in hot air flow and polish by friction among seeds, which reduces sticky hull rate and increases the smoothness of the final product. It evades the disadvantage of unpolished, yellow, high sticky hull rate, etc. in a normal fluid bed drier.

The cost of the Sesame Dehulling project

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The project essential facilities such as water, power supply, and fuel for roasting. Estimates for a unit with a capacity of 3000 MTPA or 15 MT daily: Around 35 KL/day water, 25 – 15 MTPD coal / FO, 1100 KWH /day power, respectively as fuel, would be a basic necessity for the proposed project. Area (600m2); Built-up space: (150m2) and plant and machinery such as Sesame seed pre-cleaning unit, wire mesh basket, de-stoner, mixing tanks, pulper and mechanical drier, and vibratory screen are key necessities. The Total Fixed Capital is around Rs. 40,13,613.

Sr. No.Particulars₹ in Lacs
1Land5.00
2Building15.00
3Plant & Machinery23.50
4Furniture, other Misc. Equipments5.00
5Other Assets including Preliminary / Pre-operative expenses2.35
6Margin for Working Capital56.00
 Total106.85

Financial arrangements for De-hulled sesame seeds business

Bank term loans are expected to be 75 % on fixed assets. The proposed funding policy is stated down:

Sr. No.Particulars₹ in Lacs
1Promoter’s contribution26.71
2Bank Finance80.14
 Total106.85

The working capital calculation for establishing the De-hulled sesame seeds unit

The project demands working capital of around ₹56.00 lacs as stated below:

Sr. No.ParticularsGross AmtMargin %Margin AmtBank Finance
1Inventories28.000.257.0021.00
2Receivables14.000.253.5010.50
3Overheads14.00100%14.000.00
4Creditors 0.000.00
 Total56.00 24.5031.50

Machinery required to start De-hulled sesame seeds business

The essential machinery needed is mentioned below:

Sr. No.ParticularsUOMQttyRate (₹ in Lacs)Value (₹ in Lacs)
 Plant & Machinery / equipments    
a)Main Machinery    
1Sesame seed pre – cleaning unitNos15.005.00
2de stonerNos13.003.00
3wire mesh basketNos12.502.50
4mixing tanksNos16.006.00
5vibratory screenNos12.002.00
6pulper and mechanical drierNos.12.402.40
7Misc. ToolsLS12.602.60
 sub-total Plant & Machinery   ₹ 23.50
 Furniture / Electrical installations    
1Office furniture and ElectrificationLS15.005.00
 sub total   ₹ 5.00
 Other Assets    
1preliminary and preoperativeLS  2.35
 sub-total Other Assets   2.35
 Total   30.85

All the machines and equipment are obtainable from local manufacturers. The entrepreneur must ensure the careful selection of product mix and the appropriate type of machines and tools to acquire updated and flexible designs. It may be worthwhile to look at reconditioned imported equipment, dies, and tooling.

Profit calculations in De-hulled sesame seeds business

Sr. No.ParticularsUOMYear-1Year-2Year-3Year-4Year-5
1Capacity Utilization%60%70%80%90%100%
2Sales₹. In Lacs168.00196.00224.00252.00280.00
3Raw Materials & Other direct inputs₹. In Lacs126.35147.41168.46189.52210.58
4Gross Margin₹. In Lacs41.6548.5955.5462.4869.42
5Overheads except interest₹. In Lacs18.5619.7222.0422.7423.20
6Interest @ 10 %₹. In Lacs8.018.015.344.013.21
7Depreciation @ 30 %₹. In Lacs16.4511.758.235.885.29
8Net Profit before tax₹. In Lacs-1.379.1119.9329.8637.73

How to calculate the profitability in De-hulled sesame seeds business

This unit will have a Processing Capacity of 300 MT and a Sales Turnover of 280 MT. The growth of selling capacity will be augmented by 10% annually. (This is expected by various exploration and study; it can be amplified according to the selling tactics.) 

Energy Costs are measured at Rs. 7 per Kwh and fuel cost is estimated as Rs. 65 per liter. The depreciation of plant is taken at 10-12 % and Interest charges are taken at 14 -15 % dependent on the industry category.

Breakeven analysis in De-hulled sesame seeds business

The project might attain cash break-even at 38.04 % of projected capacity as mentioned below:

Sr. No.ParticularsUOMValue
1Sales at full capacity₹. In Lacs280.00
2Variable costs₹. In Lacs210.58
3Fixed costs incl. interest₹. In Lacs26.41
4BEP = FC/(SR-VC) x 100  =% of capacity38.04%

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