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Feasibility Report Pure Oils

Pure Oils LLP was incorporated in 2019 in India to produce and sell vegetable oils and soap products. It offers a range of oil containers and soap flavors differentiated by quality and low fat content. The products pass acid value and fragrance tests to ensure quality. While Pure Oils has a 7% market share, competitors like Adani Wimar and Patanjali have larger shares of the Indian vegetable oil market. The feasibility report recommends that Pure Oils obtain capital of over 100 crore rupees through venture capital and banks to fund expansion plans with a projected 17.2% return on investment.

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shubham jagtap
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83 views5 pages

Feasibility Report Pure Oils

Pure Oils LLP was incorporated in 2019 in India to produce and sell vegetable oils and soap products. It offers a range of oil containers and soap flavors differentiated by quality and low fat content. The products pass acid value and fragrance tests to ensure quality. While Pure Oils has a 7% market share, competitors like Adani Wimar and Patanjali have larger shares of the Indian vegetable oil market. The feasibility report recommends that Pure Oils obtain capital of over 100 crore rupees through venture capital and banks to fund expansion plans with a projected 17.2% return on investment.

Uploaded by

shubham jagtap
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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YEAR 2020-21

PURE OILS LLP


12, Sea Bay, Off Coast South Odisha

FEASIBILITY REPORT
-By HG and Co.
INTRODUCTION
Pure Oils LLP was incorporated in the year 2019 in Off coast South Odisha by 5 designated partners
with 3 being residents of India.

PRODUCT OR SERVICES OFFERED


 Pure Oils LLP offers a wide range of products spanning from Vegetable oil containers in
various quantities and various oil based soap range as well with assorted flavours.
 The products are mainly differentiated on the basis of their quality and low fat content. The
customers prefer these products because of their health supportive parameters.
 The products have passed various tests such as the Acid Value test and the fragrance profile
tests which again entrusts the customers of its quality.

TECHNOLOGY
 The oils are processed using the chemical extraction process and further hydrogenation
process is conducted to convert it into semi solid form.
 In the processing of edible oils, the oil is heated under vacuum to near the smoke point or to
about 450 °F (232 °C),[20] and water is introduced at the bottom of the oil. The water
immediately is converted to steam, which bubbles through the oil, carrying with it any
chemicals which are water-soluble.

COMPETITION

Market Share
20%
38%
7%

35%

Adani Wimar Patanjali


Mother Dairy Pure Oils
INDUSTRY
The Indian vegetable oil industry accounts for about 5% of the world’s vegetable oil production. The
estimated demand for vegetable oil is over 18mt (million tonnes) which is predominantly met by
imports. India’s share in the world’s vegetable oil imports is about 14 per cent.
BUSINESS MODEL
Based on India's demographic dividend and good economic development, demand for commodities,
including cooking oil, looks promising as people's living standards continue to rise. Due to low
productivity and low planting profits, India's domestic vegetable oil production stagnated. In order
to meet the continuous growth of demand, the import volume of vegetable oil in India increased by
45% in the past five years, and the import dependence reached 70%. 

MARKETING AND SALES STRATEGY


Internet marketing includes strategies that will help company’s website rank highly in search engine
results for keywords related to our services.
When we advertise online, you not only market your business to customers that are searching for you,
but you can also make it easy for them to contact you. 

REGULATIONS AND ENVIRONMENTAL ISSUES


The EHS Guidelines for Vegetable Oil Production and Processing are applicable to facilities that
extract and process oils and fats from a variety of seeds, grains, and nuts; these include canola,
castor, cottonseed, mustard, olive, palm, palm-kernel, peanut (groundnut), rapeseed, safflower,
sesame, soybean, and sunflower. Additionally covered are crude oil production and refining
processes, from the preparation of raw materials to the bottling and packaging of final products for
human or animal consumption. These guidelines are being complied with.

CRITICAL RISK FACTORS


One of the key risks that edible oil companies face is the risk arising out of volatility in prices of raw
materials (oilseeds), crude edible oil and refined edible oil, which may be influenced by trends in
international commodity prices, current fluctuations, demand-supply dynamics and macro-economic
trends.

CAPITAL REQUIREMENTS AND STRATEGY


 The firm would be needing a capital of 109.98 crores at the beginning of the year itself.
 For this purpose additional projected revenue is required is 770 crores.
 The funds shall be provided by various venture capital financiers and banks
 The proposed debt equity ratio is 2:1
 The expected ROI is 17.2%

FINAL FINDINGS AND RECOMMENDATIONS


The major sources of dietary lipids are edible oils, which include both vegetable and fish oils.
Crude oil extracted from vegetable and fish sources contain mono-, di-, triacylglycerols along
with impurities, which necessitates refining. The main objective of refining is to remove the
contaminants that adversely affect the quality of oil, thereby reducing the shelf life and
consumer acceptance. However, this refining process needs to be tailored as the
composition of crude oil is highly variable, depending upon the plant/fish species,
geographical location of the source and method of oil extraction. Recently, extensive efforts
have been made to develop refining technology, using either conventional physical/chemical
processes or several unconventional processes including biological and membrane
processes. The first section of this review gives a brief description of general composition of
some commonly used vegetable and fish oils, followed by the review of various refining
methods and their effects on the oil constituents. Finally, an effort is made to understand the
technological gaps in the existing methods and possible directions of research to overcome
the said gap.

CONCLUSIONS
It can be concluded that the decisions only helped in market expansion of Edible Oils on
health grounds is certainly an essential commodity in today’s increasing demands of
people’s due to health consciousness. The P.D.S. for edible oil has been found to be income
neutral as the society couldn’t get any better access to these oils over the rich. These results
also help us in selecting good edible oils and comparing them.
Government has also taken many steps towards it & helps in increasing demands for
domestic edible oils by restricting imports through various restrictions.

Series 1
800
698.89
700
600
PROFIT(in crores )

496.33 484.91
500
400
300 230.57 210.57
200
100
0
2021 2022 2023 2024 2025
YEAR

SOURCES OF HELP
Angels
Angels are generally wealthy individuals or retired company executives who invest
directly in small firms owned by others. They are often leaders in their own field who
not only contribute their experience and network of contacts but also their technical
and/or management knowledge. 
Venture capital
The first thing to keep in mind is that venture capital is not necessarily for all
entrepreneurs. Right from the start, you should be aware that venture capitalists are
looking for technology-driven businesses and companies with high-growth potential
in sectors such as information technology, communications and biotechnology.
Business incubators
Business incubators (or "accelerators") generally focus on the high-tech sector by
providing support for new businesses in various stages of development. However,
there are also local economic development incubators, which are focused on areas
such as job creation, revitalization and hosting and sharing services.

References
• https://www.business-standard.com/article/economy-policy/govt-planning-to-launch-
national-mission-on-edible-oil-in-the-near-future-120012101158_1.html
• https://thewire.in/political-economy/india-edible-oil-self-sufficiency
• https://www.business-standard.com/article/companies/tata-steel-sez-s-gopalpur-
park-to-house-rs-300-cr-edible-oil-plant-119021400474_1.html
• https://www.moneycontrol.com/financials/adanienterprises/balance-sheetVI/AE13
• https://ebizfiling.com/blog/fssai-registration-process-for-vegetable-oil-processing-
units/

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