If we talk about Castor oil Business in India 2021 i.e. castor oil, it is multipurpose vegetable oil, Best Way to start Castor Oil Business In India 2021 and it has been used by people for thousands of years.
Ricinus communis, the castor bean or castor oil plant, is a species of flowering plant in the family that is perennial. That is, it is a species of perennial flowers. And the castor beans from which castor oil is made contain a toxic enzyme called ricin.
However, while making castor oil, it is heated to a particular temperature or passed through a high temperature. And due to this process, the toxic enzymes found in it are inactivated and through which the oil can be used safely. Therefore, at present castor oil is also used in the manufacture of many cosmetic items.
Apart from this, it is also used as Ayurvedic medicine to get rid of some common ailments like constipation and skin diseases. So today we are trying to know about Castor Oil Business In India 2021 through this article of ours. But before that let us know why people use castor oil, that is, what can be the benefits of using castor oil.
Castor oil applications and benefits ( Castor Oil Business In India 2021 )
There are many reasons behind using Castor Oil, some of these reasons are as follows.
- If we talk about the medicinal uses of castor oil, it is used as a natural laxative.
- Since this type of oil promotes hydration, it is used in cosmetics such as lotions, makeup and cleansers.
- Castor oil stimulates tissue growth to create a barrier between the wound and the environment, and reduce the risk of infection.
- Ricinoleic acid is found as the main fatty acid in this type of oil, which has effective anti-inflammatory properties.
- Castor oil has antimicrobial properties so when applied to the skin it can help fight bacterial overgrowth.
- By applying castor oil regularly to the hair, it lubricates the hair shaft, which increases the elasticity of the hair and reduces the chances of breakage or fall.
castor oil sales potential
As we have clarified earlier that Castor Oil has not one but many uses, so its demand is always present in the markets. Our country India is one of the best producers of castor seeds India accounts for about 85% of the global castor seed production.
According to a reliable report, this castor oil market had reached a volume of 790.5 kilotons by 2019 and it was expected to touch $1,470 million by 2025. Castor oil is not only used as cosmetics or Ayurvedic medicines but has also been used as a raw material in its other industrial units.
These include units manufacturing various products such as biodiesel, polyurethane adhesives, machining oils, refrigeration lubricants, etc. This versatile nature of castor oil always keeps its need and requirement in the market.
How to start Castor Oil Business In India 2021
To start the Castor Oil Business In India 2021, the entrepreneur also needs to complete all the processes that any other business can do. As we have come to know through this article so far that castor oil has versatile uses, so it is always demanded by many industrial units and also by common people.
An entrepreneur who wants to start Castor Oil Manufacturing Business also needs to manage all the processes like management of land, management of finance, purchase of machines and raw materials, recruitment of employees, the technology of manufacturing, etc. Let us know how a person can start this business of his own.
1. Manage Land ( Castor Oil Business In India 2021 ):
Although the entrepreneur can start this type of business from any non-cultivable land, the entrepreneur needs to manage the land at such a location.
Where there is proper arrangement of road, electricity, water etc. Setting up a Castor Oil Plant also requires space for a workshop or manufacturing process, space for electric utilities, space for inventory and a small office space. In this way, an entrepreneur may require 900-1200 Square Feet of space to start this type of business. If the entrepreneur wishes, he can take the land or shop on rent or lease.
2. Manage Finance ( Castor Oil Business In India 2021 ):
In starting this type of business, the entrepreneur may need to spend at least 7-10 lakh rupees. Therefore, if the person starting Castor Oil Manufacturing Business can manage finance from his personal savings or other sources then it is fine.
Otherwise, he can also apply for formal sources of credit like bank loans and subsidy loans under any government scheme, etc. Keep in mind that it is almost impossible to start any business without money. Hence finance plays an important role in starting any business and reaching its goals.
3. Required license and registration
First of all, the entrepreneur has to give a statutory form to his Castor Oil Business In India 2021, so the entrepreneur can register his business under Proprietorship if he wants. And after that, the entrepreneur also needs GST registration so that he can generate tax invoices, etc. In addition to tax registration, the entrepreneur may also need a drug and cosmetic license as castor oil is used as a cosmetic product.
Apart from this, there may also be a need to get a trade license or factory license from the local authority like Municipal Corporation, Municipality, etc. If the entrepreneur wants, he can also register his enterprise in Udyog Aadhar registration and if the entrepreneur is thinking of selling castor oil by making his own brand then he may also need trademark registration.
4. Purchase of machinery and raw materials
Various machinery and equipment are required to manufacture Castor Oil from Castor Beans. Therefore, before making a purchase, the entrepreneur should do a comparative analysis by asking for quotations from different suppliers. The list of major machinery used in this business is as follows.
- Heavy Duty Oil Expeller Chamber With Oil Collection Tank
- Filter press with all equipments like flutter cloth, stainless steel oil collection tray, galvanized tray etc.
- Electric Motor With L&T Starter
- baby boiler with chimney
- Spark box with all equipment
- Oil Decorator With Electric Motor
- Other machinery and spare parts
As far as the raw material for manufacturing Castor Oil is concerned, the main raw material for this is castor seeds. Castor seeds yield 40% to 60% oil, which is rich in triglycerides. This oil also contains water-soluble toxins, which is why it is not used as edible oil.
5. Hire staff ( Castor Oil Business In India 2021 )
To manufacture Castor Oil from the above-mentioned machinery, the entrepreneur needs a skilled machine operator. Apart from this, skilled quality engineers are also required to produce castor oil as per ISO standards.
Apart from this, some helpers are also required to move the goods from one work station to another. And to handle the work of the office, there is a need to hire an educated and skilled employee. Thus the entrepreneur may need to employ 7-8 employees in total.
6. Start Castor Oil Manufacturing Process:
Castor oil is manufactured by extraction method which is also economically suitable but extraction method can be batch type or continuous. The extraction process to produce pure castor oil from the extraction process includes the distillation process, the process of separating the wax available in the oil.
Castor Oil Business In India 2021 In the Castor Oil Manufacturing Process, the first ripe seeds are allowed to dry when the castors are split open and the seeds are discharged. Note that castor seeds are cleaned before extraction, then cooked, and then dried.
Only then is the oil extracted from these by pre-pressing, the screw in the expeller is repeatedly tightened to give high pressure. And when all the oil is removed from the seeds, then after that oil is filtered. And the material which remains due to pressure is called cake.