A Successful Industry of Neem Oil

A Successful Industry of Neem Oil Neem oil extraction business opportunity demands adequate knowledge about the oil extraction process. There are several techniques used in the industrial and commercial extraction of neem oil. Neem oil extraction using the solvent like alcohol, ether, and hydrocarbons is the most used process in the industry. The choice of the neem oil extraction process depends on the nature of the chemical compound that’s being extracted.

Related Projects:- Edible Oils Projects

Commercially produced neem oil treated with the solvent does not contain Azadirachtin. This type of neem oil is not suitable for use on the certified organic crop. A different process of oil extraction produces different compositions of neem oil. It all depends on the usage and the purpose of the extracted neem oil.    

  Neem oil is a type of naturally occurring pesticide which is extracted from the seeds of the neem tree. It is loaded with antioxidants and nutrients that protect the skin from environmental damage and help fight radical damage. Cold-pressed neem oil is extensively used in manufacturing cosmetics such as hair products, soaps, hand creams, and pet shampoos.

Related Videos:- Oils and Fats  

Neem oil's ability to enhance agricultural productivity and flavor food is a vital factor escalating the market growth, also usage of neem in various end-user products and extensive usage of neem in bio-based farm products are the major factors among others driving the neem oil concentrates market swiftly. Moreover, continuous research and development activities will further create new opportunities for the neem oil concentrates market in the forecast period of 2020- 2027.  

Business Plan for Neem Oil Extraction

  As any manufacturing establishment business plan is an effective tool to have in neem oil extraction. According to the market study report determine what type of neem oil you will be extracting. It also helps you to determine the appropriate method and machinery. It is advisable to have a project report in hand before starting. It will also help you to calculate your startup capital requirement. Craft a business plan on the basis of that. Determine your marketing strategy.

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Demand for Neem Oil

  The main application of neem oil is in agriculture. In the agriculture industry, neem oil is generally used as a natural pesticide, insecticide, and fungicide. Containing different ppm azadirachtin in neem oil, it is used for a different purpose in different dosages. Another industrial use is neem coated chemical fertilizer like urea.

Related Project:- Neem Oil  

Other than agriculture neem oil has wide market potential in the cosmetic industry. In manufacturing skincare, haircare, body care product s, neem oil is an essential raw material. In the Ayurveda cosmetic industry which is now booming, neem oil is an essential ingredient. Neem oil is also an essential product in the herbal medicine industry.    

Market Overview

   

The global neem extracts market demand was 503.5 USD million in 2013 and is projected to grow at a CAGR of 14.8% from 2014 to 2020. The market is expected to witness growth on account of rising demand from various end-use industries including personal care, pharmaceutical, animal feed, and agriculture. Furthermore, increasing consumer awareness about the health benefits of neem, particularly in developed regions, is anticipated to boost the market growth over the forecast period.   The global neem extract market generated revenue worth $653.7 million in 2015 and is expected to register a CAGR of 16.3% during the forecast period (2016–2022). The market is mainly driven by the growing demand for herbal personal care products and the increasing usage of neem products in livestock and pet care.

  Related Project: - Extraction of Neem Oil  

Usage of chemical pesticides and fertilizers in farming results in decreasing the quality of the product and has harmful effects on the ecology. This makes neem-based fertilizer and pesticide ideal for farming. Hence, the rising demand for bio-based fertilizers, pesticides, and insecticides in developed and developing regions owing to the presence of stringent regulations implemented by various agencies is expected to fuel product demand over the forecast period.  

Conclusion

  “Neem Oil - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost And Revenue, Plant Economics” The scope of the report includes assessing market potential, negotiating with collaborators, investment decision making, corporate diversification planning, etc. in a very planned manner by formulating detailed manufacturing techniques and forecasting financial aspects by estimating the cost of raw material.  

Noo_Art2021

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#DetailedProjectReport #businessconsultant #BusinessPlan #NPCS #entrepreneurindia #startupbusiness #startupbusinessideas #businessestostart #startupideas #businessstartupindia #EdibleOilManufacturingBusiness #edibleoils #edibleoilbusiness #edibleoilindustry #NeemOil #NeemOilManufacturing #NeemOilProduction #NeemOilBusiness #NeemOilIndustry

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NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries.

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And before diversifying/venturing into any product, wish to study the following aspects of the identified product:


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The report contains all the data which will help an entrepreneur find answers to questions like:

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• What will be the market potential?


The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product.

The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.


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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

 

 

Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity

 

Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

 

Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)

 

Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

Project at a Glance

Along with financial details as under:

 

  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital

 

  •    Annexure 1:: Cost of Project and Means of Finance

  •    Annexure 2::  Profitability and Net Cash Accruals

                Revenue/Income/Realisation

                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios

                D.S.C.R

                Earnings Per Share (EPS)

               

             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 

                B.E.P

  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR