Sunflower Oil Project Report, Business Plan

Sunflower Oil Project Report, Manufacturing Business Plan

Introduction

Hello friends, today we are here with a new topic called “Sunflower Oil Project Report and Making Business Plan”. Sunflower oil is a yellow-colored fatty oil produced by extracting from sunflower seeds. It has different health benefits, for instance, better digestion, boosting the immune system, and indorsing heart health. Thus, it is greatly used as a salad oil and in the production of margarine, varnishes, soaps, and paints.

The sunflower project guide will give a brief idea of the techno-commercial roadmap for establishing up a sunflower oil manufacturing unit. The article will include all the necessary aspects that one must be aware of while taking a firm decision to begin the sunflower oil industry. This includes the macro-overview of the market to micro aspects of the industry performance, key success and risk elements, manufacturing prerequisites, project expenses, project financials, expected ROI, profit margins, etc. This report is very beneficial to entrepreneurs, investors, business strategists, and all those who could plan for initiating the sunflower oil business.

Sunflower oil is a vital cooking oil used across the world. Check out the summary of the business project and its checklist in the following section to start the sunflower oil manufacturing business. Sunflower seeds include around 32 to 40 percent of the oil. Hence, it is considered a perfect source or an excellent oilseed to develop an edible oil processing plant.

Sunflower oil is and is rich in Vitamin E when compared to other vegetable oil and has a light appearance. It is a blend of polyunsaturated fats with low saturated fat levels and monounsaturated fats. This healthy oil is recommended by chefs globally. It requires moderate capital investment and is based on the scale (Small or commercial) of your unit. Thus, initiating a manufacturing unit is a profitable venture for entrepreneurs.

A guide to Sunflower Oil Project Report, Manufacturing Business Plan

Sunflower Oil Project Report, Manufacturing Business Plan
Sunflower Oil Project Report, Manufacturing Business Plan (Image credit: pixabay)

Project Details, Requirements, and Costs Involved:

  • Area, Location, and Site Improvement
  • Plant Design and Layout
  • Necessary Equipment Requirements and Expenditures
  • Raw Material needed and Expenditures
  • Packaging necessities and Expenditures
  • Transportation Facilities and Expenses
  • Utility Requirements and its costs
  • Manpower needed and their salaries

Market potential of Sunflower Oil Manufacturing Unit

During the past years, the domestic need for sunflower oil has increased as processors have developed refineries and large buyers are available for future requirements. Food processing units need the oil for frying foods (such as potato chips), salad, margarine, main cooking oil, and dairy food items.

Sunflower oil is famous in several luxurious dining restaurants for its neutral taste. A small amount of oil is used for industrial frying applications that employ high temperatures require good oxidation stability. It is also seen in cosmetics, resins, and lubricants industries.

Sunflower oil is popular and used exclusively for its properties like light taste, frying performance, and health advantages. Moreover, it caters to the requirements of people and food manufacturers who are seeking a healthy and best-consuming vegetable oil. Apart from cooking oil, it has significant demand in various other industries as well.

Business plan for establishing Sunflower Oil Manufacturing Unit

Before beginning the business, you must draft a proper project report. This will guide you to commence the business in a step-wise manner. Also, it will aid to get funding from the bank or other capitalists. You can craft the business plan by taking advice from experts who are in the business from starting or on your own if you have the experience of including market analysis, vision, business objective, mission, financial projection and analysis, marketing policies, and expansion policies to include in the business report.

Business registration and licensing required to start Sunflower Oil Manufacturing Unit in India

Business registration is essential in this business. It is recommended not to initiate the business as a proprietorship because it demands capital investment and thoughtful participation from the owners. Select the business form properly and register the business as per the state legal guidelines.

After registration, you must concentrate on securing approvals and licenses. Sunflower oil is a food product and the manufacturing demands some special permissions. However, they are also dependent based on which region you have planned to establish the unit and the rules laid down by your state law. Verify with the upcoming tax and agreement obligations of this business.

Setting up Sunflower Oil Production Unit

The manufacturing works demand sufficient space. For a medium-scale operation, you should acquire a 5000 Square Feet area. Along with that, you must ensure to have the provision of electricity and water.

Consult the machinery dealer to identify the electrical load requirement. Generally, it is recommended to acquire land or rental area in an industrial place and thus you can avail yourself of the accessible amenities for easily arranging your unit without hassle.

Sunflower Oil plant cost in India

Generally, any business has two sections of investment. First is the fixed capital that is spent for building a plant, acquiring machinery, and other initial expenses associated with the business established or foundation. The second investment is recurring and called working capital. It includes expenses towards the raw material purchase, utility bills, employee salaries, and marketing expenses.

Machinery required to start Sunflower Oil Manufacturing Unit

Sunflower oil manufacturing plant has an integrated machine for the steps like oil processing, refining, and packaging. The cost of the machinery is determined by the capacity or volume you are planning to produce.

Raw materials required to start Sunflower Oil Manufacturing Business

You may also check this: Jute Bag Manufacturing Project Report.

Sunflower Seeds
Sunflower Seeds (pic source: pixabay)

The most important raw material is sunflower seeds. You should even get the packaging materials too for the product.

The basic raw material needed for the production of edible oil is sunflower seed. Apart 

from oil seed, the edible oil producing plant demands some auxiliary materials and compounds which are mentioned below. 

  • Sunflower oil seed (tonnes)  
  • Auxiliary Materials
  • Bleaching earth 
  • Common salt 
  • Caustic soda
  • Jute sacks
  • Trisodium phosphate 
  • Chlorine  
  • Aluminum Sulphate 
  • Barrel

Utilities 

The major requirements for the sunflower oil plant are power connection, water provision, and fuel oil. Electricity is required to produce motive power for machinery, provide electricity to sockets, lighting systems, and other related machinery. Water is used for steam generation, drinking, and general stuff. Fuel oil is used as a source of energy for steam-producing machinery.

Manufacturing process of Sunflower Oil

Oil milling is an old process that was initiated with a very traditional mortar and pestle crushing manner. This was then replaced by hydraulic extraction, later screw pressing, and in the 20th century, through chemical extraction. 

Mechanical extraction is generally followed in developing countries while solvent extraction is seen in developed countries and in countries that account for a high yield of oilseeds. The oil mill manufacturing uses mechanical extraction and batch refining method for obtaining oil.  

The technological procedure of manufacturing edible oil from sunflower seeds includes the following steps:- 

a) Cleaning Seed and preparation 

b) Oil Pressing (extraction), and 

c) Oil refining and Packaging

Greasy waste matter and other unwanted dirt released from the refinery are gathered and should be collected in the collecting concrete pit. Thus, the plant will not pollute the ecosystem.

The sunflower oil manufacturing process is a complex oil-making process and comprises several steps. The sunflower seed includes roughly 40 – 50% oil weight. Primarily, you have to obtain the oil not only from the seeds but from the entire head of the sunflower to get the maximum yield.

After the extraction process of the sunflower oil manufacturing process, you have to send the extracted oil to refining and filtering. Modern oil extraction methods generate a by-product called pressed sunflower seed cake or meal. This is a rich protein product and used as livestock feed.

Sunflower Oil Project Report / Economics of Sunflower Oil Manufacturing Business

Land and Building costs: Rs. 6,50,000

Plant and Machinery: Rs. 10,00,000

Miscellaneous Assets: Rs. 3,75,000

P & P Expenses: Rs. 1,00,000

Contingencies @ 10% on Building and plant and machinery: Rs. 1,55,000.

Sunflower Oil Project Report – Working capital margin: Rs. 1,97,000.

Total: Rs. 24,77,000

Raw Materials: Rs. 51,84,000

Packing Materials: Rs. 90,000

Utilities: Rs. 1,50,000

Stores and Spares: Rs. 60,000

Repairs and Maintenance: Rs. 90,000

Selling Expenses @ 25%: Rs. 3,69,000

Administrative Expenses: Rs. 90,000

Total: Rs. 63,93,000

Sunflower Oil Project Report – Total project cost of Sunflower Oil is: Rs. 88,70,000.

Sunflower Oil Project Report – Means of Finance

Promoters’ contribution: Rs. 9,90,000

Term loan from Bank FI: Rs. 14,87,000

Total: Rs. 24,77,000.

Sunflower Oil Project Report – Projected profitability

Sales Revenue at 100%

Sunflower oil: Rs. 76,80,000

De-oiled cake: Rs. 46,30,000

Total sales price: Rs. 1,23,00,000.

Profit in Sunflower Manufacturing Business

Profit = Sales – Total expenses = Rs. 1,23,00,000 – Rs. 88,70,000 = Rs. 34,30,000.

Conclusion

Sunflower oil is classified under the FMCG product segment. Similar to any other edible oil, the sunflower oil manufacturing business develops an appropriate prominence on marketing and distribution. Also, you must consider brand established currently.

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