How to Start Mustard Oil Mill Business ?

Mustard Oil Mill Business Overview

Mustard Oil is one of the traditionally valued oils in India. It has vast health benefits which are extracted from pure seeds of mustard. The StartupYo guides you to know mustard oil manufacturing process, how much money is needed to open up a small mustard oil mill in India as with the invention of mustard oil production machine the steps to start Mustard Oil Making Business Plan has become easier and also faster. So know what are the requirement or license for starting a mustard oil plant in India.

Mustard Oil Mill Business Making Plan

Mustard Oil is very famous in the subcontinent of India and also other parts of Asia. The following are the Steps to start Mustard Oil Making Business Plan:

Step – 1:You need to know how much money is needed to open up a small mustard oil mill in India.

Step – 2: What is the machinery required for manufacturing of mustard oil.

Step – 3: What is the manufacturing process of mustard oil?

Step – 4: What are the requirement or license for starting a mustard oil plant in India.

Step – 5: Uses of mustard oil.

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Mustard oil manufacturing plant cost

Mustard oil production in India accounts for 40%, this edible oil has a great market potential and hence many people are getting engaged with this business. The Mustard oil factory project cost ranges from Rs 20 to Rs 30 lakhs, this investment includes different types of equipment, taxes, electricity, salary of employees, registration, licence, raw materials, and other additional costs.

How much money is needed to open up a small mustard oil mill in India is the first step in the steps to start mustard oil making business plan. In this step, the mustard oil mill setup cost depends on the mustard oil manufacturing factory capacity. The following are the details of the expenses for the machinery and labor:

Equipment and MachineryQuantityCost
Screw Oil Expeller01 set>1500 US $
Oil Filter01 set>600 US $
Machine for Cooking01 set>1500 US $
Machine for Cleaning01 set>1400 US $
Oil Refining Unit01 set>20000 US $

The following are the details of mustard oil mill running expenses:

Main ExpenseUnitCost
Worker or Labor (Per Month)01 Person15 US $
Raw Material (Mustard Seeds)01 Kg0.56 US$
Utilities (Per Month)LS
6.8 US$
Other Expenses25 US$

Then you can calculate mustard oil mill turnover by subtracting from the capital revenue to the running cost and the remaining amount is your profit.

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Mustard oil business profit

Mustard oil is a popular cooking oil, hence is a very profitable business in India. Its business profit depends on market demand, marketing strategies, production cost, quality, branding, competition and more. The Mustard oil business profit ranges from 25% to 30% after deduction of capital investment costs.

Mustard oil making machine

The second step in the steps to start mustard oil making business plan is the machinery required for the manufacturing of mustard oil. In this step, the mustards are the tiny pieces of oilseed family and are observed in both the form as the following as the oilseeds and as the zest. The following are the machinery required for manufacturing of mustard oil:

  • 1-10 ton/day Small Plant of Mustard Oil.
  • Mini Mustard Oil Plant.
  • Mini Refining Equipment Set.
  • Small Mustard Oil Refining Plant.

Mustard oil extraction machine is very important to run a mustard oil business, as it helps in the extraction of oil. There are many different mustard oil machines available for different types of mustard oil industries, there are Expeller Press, Solvent Extraction, Cold Pressing Machine, Rotary Extraction Machine and more. The price of a mustard oil machine price varies, the starting price of a mustard oil machine is Rs. 1 lakh and the number keeps increasing depending on the brand, capacity, features, and quality of the machine. A good quality machine helps in better mustard oil processing. 

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Manufacturing process 

The manufacturing process of mustard oil is the third step in the steps to start mustard oil making business plan. In this step, the term mustard oil is used for 03 distinct oils that are produced using the seeds of mustard. Then 30% of this is prepared out of oil. The mustard oil plant includes the following workshops or sections:

  • Seed Selection Workshop or Section.
  • Oil Pressing Workshop or Section.
  • Storage Workshop or Section.
  • Packing Workshop or Section.

The following are the simple step for the manufacturing process of mustard oil:

  • Pretreatment of Mustard Seeds
  • Cleaning of Mustard Seeds
  • Heating of Mustard Seeds
  • Mustard Oil Pressing
  • Filtration of Mustard Oil
  • Oil Filling/ Bottling

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The above simple steps for the manufacturing process of mustard oil can be explained briefly in the following:

Pretreatment of Mustard Seeds :Pretreatment of Mustard Seeds is the first step in the manufacturing process of mustard oil. In this step, the mustard seeds should select carefully for the best quality generation of best quality edible mustard oil by the oilseeds with the help of pre-treating machine such as the following:

  • Cleaning Sieve
  • Stone Remover
  • Oil Seeds Hulling Machine
  • Flaking Machine
  • Crushing Machine
  • Seeds Extruder

Cleaning of Mustard Seeds :The second in the manufacturing process of mustard oil is the cleaning of mustard seeds. In this step, the mustard seeds will be cleaned thoroughly so that it provides that no foreign materials will be entered into the mustard oil pressing machines.

Heating of Mustard Seeds :Heating of Mustard Seeds is the third step in the manufacturing process of mustard oil. In this step, the quantity of the yield is increased by heating the seeds.

Mustard Oil Pressing :The fourth step in the manufacturing process of mustard oil is mustard oil pressing. In this step, to squeeze out mustard oil the preheated machines are now passed into the screw oil pressing machine.

Refinery of Crude Mustard Oil :Refinery of Crude Mustard Oil is the fifth step in the manufacturing process of mustard oil. In this step, we will get crude mustard oil and seed oil cake. To improve the edible mustard oil for human use is the main mission of this process.

Filtration of Mustard Oil :The sixth step in the manufacturing process of mustard oil is the filtration of mustard oil. In this step, without adding any chemicals the machine crashes and squeezes mustard oil from the mustard seed. This is the most recommended process as it improves the quality of mustard oil, especially if the mustard oil is used for the purpose of cooking.

Oil Filling/ Bottling :The last step in the manufacturing process of mustard oil is the oil filling/bottling. In this step, with the help of the oil filling machine the refined mustard oil will be filled with bottles mechanically and accurately.

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Requirement or license

  • Income Tax
  • Mandi Act
  • Labor Laws such as the following: ESIC, EPFO, etc
  • CLU – for the purpose of land
  • Electricity Bills
  • MSME Act
  • GST
  • Factory Act
  • FSSAI
  • Fire Safety
  • Environmental Clearance

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Application Process

The use of mustard oil is the last step in the steps to start mustard oil making business plan. In this step, there are many applications of mustard oil and the StartupYo listed a few of the applications of mustard oil. The following are the applications of mustard oil:

  • It is used as hair revitalize.
  • It is used in the improvement of cardiac health.
  • It is used as antifungal and antibacterial.
  • It is used as skin therapy.

FAQ’s

How to start a mustard oil business? 

What is the profit margin in the mustard oil business?

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