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1. PROJECT AT A GLANCE
6. CONSTITUTION : PROPRIETORSHIP
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
2. INTRODUCTION
The Promoters of the Firm are sons of learned, well known Businessman of Khandwa
(MP) Shri Ganesh Lal Ji Agrawal. The brother of the Proprietor Mr. Vicky Agrawal is also
doing oil mill business since many years. The Cotton Ginning & Pressing Business,
Cotton Merchants, Mill suppliers and Exporters--- is the business which is in the blood
as this business is looked after by their families from decades and from grandfather’s
time.
The Firm was established with the main object of Cotton Seed Crushing & Extraction of
Cotton Seed oil a modern plant for manufacturing of cotton bales, cotton seed oil and
de-oiled cake. The proprietor has Erstwhile firm Shree AShutosh Enterprise in Which
Cotton Seed crushing Mill was taken on lease & was runnning successfully. Now The
Promoter Proposes to establish a Oil Mill unit of 15000 MT annual crushing capacity
near Gram SurgaonJoshi Khasra no. 451/2, Khandwa and bring all his business in the
new Unit under the Proprietorship of Mr. Ashutosh Agrawal.
One of the most optimum vegetable oils, COTTONSEED OIL is highly popular for its
neutral, slightly nutty flavor and extensive applications. It is “naturally hydrogenated”
because of its levels of oleic, palmitic and stearic acids. This makes it stable frying oil
without the need for additional processing or formation of trans-fatty acids. When
grown for oil extraction, cotton is one of the key genetically modified crops grown
around the world, ranking high with soy, corn, and rapeseed (canola).
Edible oil is the major elements of our meals and every person uses of various edible
oils in food every day in one or the other form. Many regions of India are quite
prosperous in respect of the oils seeds - Specially MADHYA PRADESH, There are mainly
two methods of extracting oils from the seeds out of which the firm is adopting
Expelling method .
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
The Project :
In view of Setting up the new unit, the firm proposes to set up a 15000 MT annual
crushing capacity. The Proposed unit is being set up Near Gram SurgaonJoshi Khasra
no. 451/2, Khandwa
The unit will mainly extract Cotton seed oil which is derived from the seeds of various
species of cotton that are grown primarily for their fibers.
The total outlay for the project is estimated to be Rs. 486.20 lacs. Power requirement
for the project will be 115 KVA which would be sourced from MPPKVV. There is no
serious effluent in the industry, man Power requirement for the project is easily
procured as Khandwa and its surrounding areas are vastly populated hence there is no
problem of trained labour. The unit will provide direct & indirect employment to large
number of people.
Location :
The role of location of the unit is also one of the major factor for success of any
industry. The proposed project will be at Gram SurgaonJoshi Khasra no. 451/2,
Khandwa (M.P.)
The biggest advantage of this project is its location The Proposed unit is to be set up in
Khandwa. It is surrounded by Villages with Abundance of Cotton production . So
location is very suitable for the Cottonseed Oil Mill Plant as all the infrastructure
facilities like transportation, electricity and labours are easily available on the site.
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
The promoter is from reputed and renowned Family. The family had its interest in
Cotton Seed Oil Manufacturing Industry. Mr. Ashutosh Agrawal son of Mr. Ganeshlal Ji
Agrawal aged 42 years is a Bachelor of commerce graduate. He has shown an excellent
academic performance during the period of Studies.
Mr. Ashutosh Agrawal has more than two decades of experience in the business of
Cotton seed Ginning & oil mill. He is well aware of the Market of Khandwa & nearby
areas he has placed a tremendous contribution in placing the firm to higher
achievements and has been one of the most influential businessman. He Believes in
doing things differently & accepting new challenges. Since taking over his duties the
firm has made improvement for developing new markets & Finally Proposed to set up a
this unit. His Job is to tackle the purchases and maintain relations with Ginners and look
after the Accounts and Financial Management of the Company. He has well established
Networks in the market.
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
Cooking oil has a bland, neutral flavour. It is ideal for frying. Cottonseed oil is
recommended for cooking, salad dressings and medicinal Purpose. New refining
technology has made it possible to produce oil products "custom made" to satisfy
almost any commercial need. High quality Cottonseed Cooking oil meets the
requirements of almost any food application imaginable. Blended with other fats and
oils, Cottonseed oil will improve their quality and functionality. Since Cottonseed
cooking oil is naturally stable, hydrogenation is not necessary for most uses.
Inputs:
The Principal raw material for cotton seed oil industry is Cotton & Cotton seed.
Cottonseed Oil is a vegetable oil extracted from the seeds of the cotton plant after the
cotton lint has been removed. The Promoter, Mr Ashutosh Agrawal has a complete
Knowledge and rapport with the Ginners and suppliers of raw materials. Abundant of
cotton is grown in nearby villages of Khandwa district which will ensure sufficient
availability of raw material as and when required.
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
By- Products:-
Cotton Seed Cake :
Cotton seed cake is made from cotton seeds after extracting oil from it. Cotton seed cake
is used for animal feedings. which is good source of nutrition .It has long been used as a
highly economic protein concentrated food for animal feeding. Being a great source of
protein, fiber and energy.
Gad :
Gad is a semi Liquid form of extract from Manufacturing process it is produce as a By
product along with Cotton Seed cake. Generally the ratio of gad is ranges from
0.50-1.00 % .
It is used as a fodder for Animal feedings . The Villagers at outskirts of Khandwa doing
Farming hence there are large number of Buyers available for Gad.
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
Uses:-
In India entire cottonseed oil produced is utilized for edible purposes, mostly for
vanaspati, only small quantity (5-10%) is used for manufacturing soaps. Cottonseed oil
can be used in all kinds of food manufacturing applications and can be customized to fit
unique needs. Following are the Uses of Cotton seed oil:-
Cotton seed oil is use for Foods
It is use for Cosmetics
It is use for production of Soaps
It is use for food products like chips & Salad dressing
It is also use as Fuel Out of India.
Cottonseed oil has a 2:1 ratio of polyunsaturated to saturated fatty acids. Its fatty
acid profile generally consists of ≈ 70% unsaturated fatty acids ( 18% mono,
52% polyunsaturated) and 26% saturated fats.
Cottonseed oil's light, non-oily consistency and high smoke point make it most
desirable for cooking "stir fry" and other oriental dishes .
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
There is evergreen demand for oil, Because every households and hotel uses the oil
every day in food items like curries and biryanies etc. Since it is a consumer product,
the market is growing at 10-15% per annum.
Marketing is deciding what to do to meet customers’ needs and how to make a product
more competitive. Selling is the action that results in a customer buying a product
Good marketing paves the way for successful selling by making a customer ready to buy
a product.
'Seeing your product as your customers see it and doing something about it to make
more money'
One of the first activities when planning an oil processing business is to decide who will
be the target customers. A Market segment is a term that describes an identifiable
group of customers. The different types of market segments for Cotton seed oils can be
described in five main groups :-
1. Retail
2. Institutional
3. Food service
4. Food businesses.
5. Wholesale Businesses.
Cottonseed crushing industry has made continuous progress in the country. The
growing shortage of other edible oils in the country during the Eighties and nineties
gave a greater impetus to increased use of cottonseed for oil extraction and since then
the demand for it has increased to a larger extent.
The by-product of the proposed plant is expeller cake which is used for animal feed.
Cotton plant is cultivated mainly for fiber and its seed are a rich source of protein and
edible oil. Cottonseed oil has many applications varying from medicinal to technical
purposes. The other uses are for cosmetic creams, glycerol, lubricants, soap stocks, etc.
The oil cake can be used as animal feed, filler for plastics & fertilizer ingredient. India is
one of the largest producer of oil seeds and oil bearing materials and both edible and
non-edible oil in the world.
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
The firm Extracts Crude Oil from the seeds, which is not edible. Refining Industries
Purchase such Crude Oil, Refine such oil, make it edible.
The promoter has good relations with the Suppliers & Buyers and has already market
available with his contact network of last 20 years.
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
Vision :
Mission :
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
7. MANUFACTURING PROCESS
The Unit Proposes to set up a Oil mill unit with a crushing capacity of 15000 MT
annually at 60% to 65% at Starting then Increasing upto full capacity Utilization. The
yield of which will be 9% of cotton seed oil, 88% of cotton seed oil cake & oil gad of 1%
(Appx.) The Brief of manufacturing Methods of the product is as under-
Expelling Method :
Expeller is used to extract oil out of Cotton seeds. Expellers of varying capacity are
available in markets with different extraction capacities. Filter press is used for filtering
the oil extracted out of oil seeds, the use of filter press would be very relevant during
the whole process.
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
Thickness of cake can be changed while running of oil expeller. This is unique
facility. It enable to find and adjust cone at the point of optimum.
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
Following chart explains Process of Extracting Cotton seed oil with necessary
machinery presentation:
Raw Material
(Cotton Seed)
Seed
Cleaning
Process of Expelling
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
Madhya Pradesh is the larger producer of required raw materials for the unit of
oil seeds.
Presence of 11 out of 18 Agro Climatic zones of India, 5 crop zones and 4 soil
types will suit production of almost any crop.
Established diversified crops - for cotton so that it will made sufficiency in
availability of Cotton seed.
Wider combination of soil type, rainfall, sun light, and temperature to suit new
crops
Competitive landscape of the major manufacturers of edible oil in Madhya
Pradesh region.
Future outlook and projections of the India Edible Oil Industry- Cottonseed Oil on
the basis of revenues in the India.
Public health advisories promote cottonseed oil as a "healthy".
It is low in cholesterol which makes it a great choice for those who want to lower
their cholesterol levels.
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
The Erstwhile Business experience benefits in setting up & Smoothly running the new
unit, along with it to set up a unit of oil producing has its own advantage due to its
location, Khandwa is a district surrounded by various villages where main business of
the people there is only farming and cattle feeding such environment and easy
availability of Raw material will enhance the capacity of the firm for Production. There
are various other Benefits of setting up a oil mill industry is depicted below:-
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
The Proposed project will be at Khasra No. 451/2 Gram Surgaon joshi, Khandwa
(M.P) and its office will be Situated at Kailash Gin Indore road, Khandwa (M.P)
Land Is taken on lease, covering an area of 5 Acre with Rs 150 lacs of cost.
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
IV. Buildings :
Firm will have buildings at factory & At Office the description of them are
depicted below:-
Godown Building Will be build up in 1126.56Sqm. with a total cost of Rs
49,88,000
Office building will be build up in 42.75 Sqm. with a total cost of Rs 4,65,000
in this way firm will will be having other Buildings as well. i.e Cotton seed
platform covering a area of 2439.59 Sqm. consisting total cost of Rs 24,75,000.
firm has a plan of building the infrastructure with the help of other residue
structures Given below is the description :
1. Cotton Seed Drying Platform
2. Tin Shed
3. Stairs
4. Labour Room
5. Barbet Wire fencing with gate
6. WBM Road
7. Land levelling
8. Weigh bridge
Mr. Ashutosh Agrawal has projected the plan with full furnished facilities so that
it will increase the attractiveness of the building, there are various quotations
have been received by the firm for the Purchase of Various Furnitures like :
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
VI. Utilities :
Power :
The Entity has applied to M.P.P.K.V.V. for a new H.T. Connection of 115
KVA . The Pre decided plan for the project regarding to the Electricity will
be as follows :
The Firm's power requirement will be with this connection, round the
clock without any disruption for the working shifts.
Water Supply :
Labour Supply :
labours are easily available in Khandwa and nearby areas. The Project
won't face any deficiency of manpower, the major part of the activity
mainly engages machinery, labour only required to operate the
machinery.
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
Transport Facility :
There are many transport firms in khandwa which will provide
convenient & Superior transport facilities. Transport is easily available in
Khandwa due to competition in this field. They provides very good
facilities from Khandwa to all over the world.
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
Capital Subsidy :-
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
Apart from SFAC Venture Capital assistance, the project is also eligible for
VAT/CST (GST) subsidy from Madhya Pradesh Government under MP Industrial
Promotion Policy, 2014 Subsidy Scheme.
Shree Ashutosh Enterprises is also exempt from paying electricity duty upto a
period of 5 years for taking a HT Connection by any DISCOM. Entity is also a HT
Connection consumer. Subsidy falls under MP Industrial Promotion Policy, 2014.
Under the same M.P. Industrial promotion Policy, 2014. Subsidy on Interest of
Term loan is available @ 5% of Interest with an annual ceiling of Rs 4 Lacs for 7
years.
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
S
no. Particulars Ratio
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
I. Sources of Funds :
Rs. 36.20 Lacs Quasi Equity (Short term borrowings from relatives & Others)
Rs. 150.00 Lacs From Owners Capital & Reserves and State Capital Subsidy
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
Buildings :
S.No. Particular Built up Area Amount in Lacs
(Sqmt.)
1. GODOWNS 1126.56 49.88
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
Total
Rs 400.00 Lacs
Guarantee Personal Guarantee of :
Shree Ashutosh Agrawal (Proprietor)
Smt. Kirti Agrawal (Guarantor)
Smt. Geeta Devi Agrawal (Guarantor)
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
Weaknesses :
Opportunities :
The demand for the proposed products is increasing day by day because of
the improvement in the Standard of living of the people. This will push up
the prices which will ultimately have a positive impact on the profitability of
the company.
Highly supportive government policy regime.
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Shree Ashutosh Enterprises Oil Mill Unit
(Cotton Seed Oil Mill Project)
Threats :
The actions of competitors are critical to the success of an oil processing business. If a
new producer starts up in business, it is unlikely that the competitors will do nothing:
for example, they may react by offering loyalty bonuses to retailers who continue to
promote their products, or introducing special offers, reduced prices, or increased
promotion. An oil producer should therefore be constantly aware of the changes that
competitors make to their businesses in response to his or her actions and take steps to
deal with the changes as they occur. Oil processors should recognize that there are
different types of competitors: producers that make different kinds of oil are known as
type competitors, whereas different manufacturers of the same type of oil are brand
competitors. The strategy for dealing with competitors is different in each case.
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