Project report for Mustard oil

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Introduction

Mustard oil is extracted from mustard seeds, often has a pungent taste with an irritating aroma. There are three varieties of mustard oil available in the 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 processes includes pressing the seeds used as cooking oil due to the presence of fatty oil and grinding of seed, processing it with water, and then filtered by the distillation process. The second method of extracting produces a light pungent oil used for other therapeutic segments as an essential oil. It is used in aromatherapy to stimulate the sweat glands and for its benefits on the skin.

Various functions of mustard oil such as appetizer, stimulant, hair vitalizer, anti-bacterial, anti-fungal, and others increase its demand in the market. It is considered an essential oil with lots of benefits to the 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. The principal factor driving the mustard oil market is to substitute the other oil products like sunflower oil which has a major share in the oil market. The availability of low-cost substitutes and a variety of products is expected to fuel the market. French regions producing white mustard oil due to its sweeter taste are 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 the body helps to increase the blood flow is expected to register steady growth in the massage therapeutic segment in the global mustard oil market. The mustard oil market is further segmented based on regions, as North America, Latin America, Eastern Europe, Western Europe, Asia-Pacific excluding Japan, Japan, and Middle East & Africa. Based on 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. The North American market is expected to expand relatively higher CAGR due to its preference as an essential oil in various industrial applications.
 

Scope of the project

Mustard oil processing in India is an unorganized business. There are 7,000-9,000 oil extracting units out of which only 20 percent are registered in the organized sector. Mustard oil consumption is increasing at a rate of 20 percent 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 percent oil. But its recovery, realized by the mechanical crushing processor (oil expeller) – the largest segment of edible oil processing industries –, is up to 35 percent only. Under this process of oil extraction, a substantial amount of oil (5-10 percent) is left in the rapeseed-mustard seed meal. There is a strong need to focus on the 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 northeastern States. Mustard oil fully meets domestic demand without the 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 prefer the 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 prefer the oil. Mustard oil processing in India is an unorganized business. There are 7,000-9,000 oil extracting units out of which only 20 percent are registered in the organized sector. Mustard oil consumption is increasing at a rate of 20 percent 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 percent oil. But its recovery, realized by the mechanical crushing processor (oil expeller) – the largest segment of edible oil processing industries –, is up to 35 percent only. Under this process of oil extraction, a substantial amount of oil (5-10 percent) is left in the rapeseed-mustard seed meal. 

There is a strong need to focus on the 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 northeastern States. Mustard oil fully meets domestic demand without the 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 is used as a cooking medium especially in northern, eastern, and north eastern of India. The demand for Mustard Oil is increasing with time. Refined Ghani, filtered, double filtered mustard oil has given a new thrust to its market. Due to consumption in the household and pickle industries, it appears to be good scope for establishing the mustard oil industry. 

Mustard oil is usually sold in unattractive plastic bottles with red labels and caps, in canisters and tin cans, and even in loose to customers. Attractive packaging and advertisement will make the oil acceptable among consumers. This branding can be developed by having some popular brand ambassadors for the promotion of organized 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 prefer the oil. Mustard oil is usually sold in unattractive plastic bottles with red labels and caps, in canisters and tin cans, and even in loose to customers. Attractive packaging and advertisement will make the oil acceptable among consumers. This branding can be developed by having some popular brand ambassadors for the promotion of organized 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 prefer the oil.

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