Project report for Mustard oil

Introduction

Project report for mustard oil  is as follows.

Mustard oil is extracted from mustard seeds, often have a pungent taste with irritating aroma. There are three varieties of mustard oil available in market includes B. nigra (black mustard), B. juncea (brown mustard), and B. hirta (white mustard). Traditionally a preferred oil for cooking, it is also used in different applications like aromatherapy, pharmaceuticals, & soaps, etc. It is extracted from two process includes pressing the seeds used as cooking oil due to presence of fatty oil and grinding of seed, processing it with water, and the filtered by distillation process. Second method of extracting produce a light pungent oil used for other therapeutic segments as essential oil. It is used in aromatherapy to stimulate the sweat glands and for its benefits on skin.

Various functions of mustard oil such as appetizer, stimulant, hair vitalizer, anti-bacterial, anti-fungal and others increase its demand in market. It is considered as essential oil with lots of benefits to skin and body is expecting to grow demand for personal care and cosmetics.Mustard oil is traditionally preferred as cooking oil and a substitute for other seed oil with higher benefits towards skin and health is expected to drive the global mustard oil market. Principal factor driving the mustard oil market is to substitute the other oil products like sunflower oil which has a major share in oil market. Availability of low cost substitutes and variety of products is expected to fuel the market. French regions producing white mustard oil due to its sweeter taste is expected to register a higher market growth in terms of value and volume over the forecast period. Mustard oil having properties to produce warmness in body helps to increase the blood flow is expected to register a steady growth in massage therapeutic segment in global mustard oil market.Mustard oil market is further segmented on the basis of regions, as North America, Latin America, Eastern Europe, Western Europe, Asia-Pacific excluding Japan, Japan, and Middle East & Africa. On the basis of regions, mustard oil has market demand is higher in Asia-Pacific regions which includes India, Thailand, and china due to its huge consumption in food. North America market is expected to expand relatively higher CAGR due to its preference as essential oil in various industrial application.

 


Scope of the project

Mustard oil processing in India is an unorganised business. There are 7,000-9,000 oil extracting units out of which only 20 per cent are registered in the organised sector.Mustard oil consumption is increasing at a rate of 20 per cent every year. Demand for mustard oil comes from rural areas and is consistent owing to its multi-uses.The rapeseed-mustard varieties/hybrids contain 40-45 per cent oil. But its recovery, realised by the mechanical crushing processor (oil expeller) – the largest segment of edible oil processing industries –, is up to 35 per cent only. Under this process of oil extraction, substantial amount of oil (5-10 per cent) is left in the rapeseed-mustardseed meal.There is a strong need to focus on marketing of mustard oil. It helps to segment and position the product in line with the need and demand. Marketing also creates a channel for products to reach consumers. Mustard oil has an extensive demand in northern and north-eastern States. Mustard oil fully meets domestic demand without need for imports non-existent. Rajasthan has over 20 markets for mustard, with Shriganganagar, Alwar, Jaipur, Kota, Udaipur, Hanumangarh, being the major ones. Mustard oil is positioned as a poor man’s oil. A repositioning of oil highlighting its health benefits and taste will make the consumer preferthe oil.

 


Product / Services & process

The unit is planning to proceed the best in class mustard oil


Market potential & Strategy

 Mustard oil is positioned as a poor man’s oil. A repositioning of oil highlighting its health benefits and taste will make the consumer preferthe oil. Mustard oil processing in India is an unorganised business. There are 7,000-9,000 oil extracting units out of which only 20 per cent are registered in the organised sector.Mustard oil consumption is increasing at a rate of 20 per cent every year. Demand for mustard oil comes from rural areas and is consistent owing to its multi-uses.The rapeseed-mustard varieties/hybrids contain 40-45 per cent oil. But its recovery, realised by the mechanical crushing processor (oil expeller) – the largest segment of edible oil processing industries –, is up to 35 per cent only. Under this process of oil extraction, substantial amount of oil (5-10 per cent) is left in the rapeseed-mustardseed meal.There is a strong need to focus on marketing of mustard oil. It helps to segment and position the product in line with the need and demand. Marketing also creates a channel for products to reach consumers. Mustard oil has an extensive demand in northern and north-eastern States. Mustard oil fully meets domestic demand without need for imports non-existent. Rajasthan has over 20 markets for mustard, with Shriganganagar, Alwar, Jaipur, Kota, Udaipur, Hanumangarh, being the major ones.

It  has  enormous  demand  as  one  of  the  edible  oils  and  used  as cooking medium especially in northern, eastern and north eastern of India. The demand of Mustard Oil is increasing with the time. Refined Ghani, filtered, double filtered mustard oil have given new thrust to its market.  Due  to  consumption  in  household  and  in  pickle  industries  it appears to be good scope for establishing mustard oil industry.  Mustard oil is usually sold in unattractive plastic bottles with red label and cap, in canisters and tin cans and even in loose to customers. An attractive packaging and advertisement will make the oil acceptable among consumers. This branding can be developed by having some popular brand ambassadors for promotion of organised brands. Mustard oil is positioned as a poor man’s oil. A repositioning of oil highlighting its health benefits and taste will make the consumer preferthe oil. Mustard oil is usually sold in unattractive plastic bottles with red label and cap, in canisters and tin cans and even in loose to customers. An attractive packaging and advertisement will make the oil acceptable among consumers. This branding can be developed by having some popular brand ambassadors for promotion of organised brands. Mustard oil is positioned as a poor man’s oil. A repositioning of oil highlighting its health benefits and taste will make the consumer preferthe oil.


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