PROJECT REPORT

Of

APRICOT OIL

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Apricot Oil Processing unit.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : [email protected]
Contact : +91 7526000333, 444, 555
 PROJECT AT A GLANCE
1 Name of the Entreprenuer xxxxxxxxxx

2 Constitution (legal Status) : xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxx
Mobile xxxxxxx

5 Product and By Product : APRICOT OIL

6 Name of the project / business activity proposed : APRICOT OIL PROCESSING UNIT

7 Cost of Project : Rs.10.79 Lakhs

8 Means of Finance
Term Loan Rs.5.85 Lakhs
Own Capital Rs.1.08 Lakhs
Working Capital Rs.3.86 Lakhs

9 Debt Service Coverage Ratio : 3.28

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 29%

13 Employment : 10 Persons

14 Power Requirement : 8.00 HP

15 Major Raw materials : Dry Apricot Seeds and Packing Material

16 Estimated Annual Sales Turnover (Max Capacity) : 90.78 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 5.00
Furniture & Fixtures 1.50
Working Capital 4.29
Total 10.79

MEANS OF FINANCE
Particulars Amount
Own Contribution 1.08
Working Capital(Finance) 3.86
Term Loan 5.85
Total 10.79
 APRICOT OIL PROCESSING UNIT

Introduction:

Apricot oil or apricot kernel oil is pressed from the kernels of the Prunus armeniaca
(apricot). Apricot kernels have an oil content of 40-50%. Apricot oil which is thin,
odourless oil pressed from the seed or kernel of the apricot. The oil is quite light and has
a nutty, aromatic flavour, making it a popular addition to many culinary efforts in certain
parts of the world. It is one oil that many people do not even know about its existence.
There are two different varieties of apricot kernel oil one which is used for cosmetic
purposes and the other for culinary consumption. This oil has high levels of vitamin E,
vitamin K, and a number of powerful antioxidants, such as caffeic acid and various
catechins, all of which adds to the health benefit of this oil. It is commonly used in the
world of massage. It is versatile and possesses multiple benefits, depending upon how
you choose to use it.

                                                


Uses & Market Potential:

Apricot Oil uses

 Apricot oil helps to improve skin tone, maintain softness and radiance of the skin.
It also nourishes the skin and lowers the appearance of face wrinkles, fine lines
and blemishes (that's the Vitamin C and E working in partnership).
 Apricot oil has wonderful anti-aging properties. It provides nutrition and support
to your skin so that the signs of aging are reduced.
 Apricot oil also helps in treating a dry and flaky scalp.
 Apricot stones/seeds otherwise thrown as a waste were utilized for extraction of
oil for both edible and pharmaceutical purposes.
The global apricot oil market is projected to grow at a CAGR of 4.8% during the
forecast period (2020 - 2025). The market is driven by robust demand for organic
health-based products, with increased consumption among health-conscious
consumers of high-quality essential oils, which is entailed in various application
areas. Apricot oil market growth is driven by increasing demand for cosmetic,
pharmaceutical, aromatherapy, and food industry. Macroeconomic factors such as
increasing per capita income, changing lifestyle, growing economy, and rapid rate
of urbanization are factors expected to fuel the growth of Indian apricot oil market.

Product:
Apricot Oil
Raw Material:
1. Dry Apricot Seeds
2. Packing Material

Manufacturing Process:

Fig. 1 – Process Flowchart

Area:

The industrial setup requires space for Inventory, workshop or manufacturing area, space
for power supply utilities and polishing area. Also, some of the area of building is
required for office staff facilities, office furniture, etc. Thus, the approximate total area
required for complete industrial setup is 1000-1200Sqft.
Cost of Machines:

S No. Machine Unit Price (INR)

1. Oil Press Machine 1 450000
2. Filter Machine 1 50000
Total 5,00,000/-

Power Requirement- The estimated Power requirement is taken at 8 HP

Manpower Requirement– Following manpower is required:

 Machine operator-2
 Skilled/unskilled worker-3
 Helper-3
 Manager cum Accountant-1
 Sales Personnel-1

FINANCIALS
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 1.66 2.71 4.27 6.22
Add: Additions 1.08 - - - -
Add: Net Profit 2.08 3.05 4.06 4.95 5.85
Less: Drawings 1.50 2.00 2.50 3.00 4.00
Closing Balance 1.66 2.71 4.27 6.22 8.07
CC Limit 3.86 3.86 3.86 3.86 3.86
Term Loan 5.20 3.90 2.60 1.30 -
Sundry Creditors 1.35 1.61 1.87 2.15 2.43

TOTAL : 12.07 12.08 12.60 13.53 14.36

APPLICATION OF FUND

Fixed Assets ( Gross) 6.50 6.50 6.50 6.50 6.50

Gross Dep. 0.90 1.67 2.34 2.91 3.40
Net Fixed Assets 5.60 4.83 4.16 3.59 3.10

Current Assets
Sundry Debtors 2.31 2.90 3.42 3.96 4.54
Stock in Hand 3.33 3.97 4.63 5.31 6.04
Cash and Bank 0.83 0.38 0.39 0.66 0.67

TOTAL : 12.07 12.08 12.60 13.53 14.36

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 46.17 58.02 68.33 79.24 90.78

Total (A) 46.17 58.02 68.33 79.24 90.78

B) COST OF SALES

Raw Material Consumed 27.00 32.13 37.44 42.93 48.60

Elecricity Expenses 0.54 0.63 0.72 0.81 0.90
Repair & Maintenance 1.15 1.45 1.71 1.98 2.27
Labour & Wages 9.95 12.24 14.69 17.04 19.94
Depreciation 0.90 0.77 0.66 0.57 0.49
Cost of Production 39.55 47.22 55.22 63.33 72.19

Add: Opening Stock /WIP - 1.98 2.36 2.76 3.17

Less: Closing Stock /WIP 1.98 2.36 2.76 3.17 3.61

Cost of Sales (B) 37.57 46.84 54.82 62.92 71.75

C) GROSS PROFIT (A-B) 8.60 11.18 13.51 16.32 19.03

18.63% 19.26% 19.77% 20.59% 20.96%
D) Bank Interest i) (Term Loan ) 0.63 0.52 0.38 0.23 0.09
ii) Interest On Working Capital 0.42 0.42 0.42 0.42 0.42
E) Salary to Staff 4.54 5.44 6.26 7.39 8.20
F) Selling & Adm Expenses Exp. 0.92 1.74 2.39 3.17 4.09

G) TOTAL (D+E+F) 6.52 8.13 9.45 11.21 12.80

H) NET PROFIT 2.08 3.05 4.06 5.10 6.23

4.5% 5.3% 5.9% 6.4% 6.9%
I) Taxation - - - 0.15 0.39

J) PROFIT (After Tax) 2.08 3.05 4.06 4.95 5.85

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 1.08 - - - -

Reserve & Surplus 2.08 3.05 4.06 5.10 6.23
Depriciation & Exp. W/off 0.90 0.77 0.66 0.57 0.49
Increase In Cash Credit 3.86 - - - -
Increase In Term Loan 5.85 - - - -
Increase in Creditors 1.35 0.26 0.27 0.27 0.28

TOTAL : 15.12 4.08 4.99 5.95 7.01

APPLICATION OF FUND

Increase in Fixed Assets 6.50 - - - -

Increase in Stock 3.33 0.64 0.67 0.68 0.73
Increase in Debtors 2.31 0.59 0.52 0.55 0.58
Repayment of Term Loan 0.65 1.30 1.30 1.30 1.30
Taxation - - - 0.15 0.39
Drawings 1.50 2.00 2.50 3.00 4.00
TOTAL : 14.29 4.53 4.98 5.68 6.99

Opening Cash & Bank Balance - 0.83 0.38 0.39 0.66

Add : Surplus 0.83 - 0.45 0.01 0.27 0.02

Closing Cash & Bank Balance 0.83 0.38 0.39 0.66 0.67
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(15 Days requirement) 1.98 2.36 2.76 3.17 3.61
Raw Material
(15 Days requirement) 1.35 1.61 1.87 2.15 2.43

Closing Stock 3.33 3.97 4.63 5.31 6.04

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 3.33
Less:
Sundry Creditors 1.35
Paid Stock 1.98 0.20 1.78

Sundry Debtors 2.31 0.23 2.08

Working Capital Requirement 3.86

Margin 0.43

MPBF 3.86
Working Capital Demand 3.86
REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 5.85 5.85 0.16 - 5.85
Iind Quarter 5.85 - 5.85 0.16 - 5.85
IIIrd Quarter 5.85 - 5.85 0.16 0.33 5.53
Ivth Quarter 5.53 - 5.53 0.15 0.33 5.20
0.63 0.65
II Opening Balance
Ist Quarter 5.20 - 5.20 0.14 0.33 4.88
Iind Quarter 4.88 - 4.88 0.13 0.33 4.55
IIIrd Quarter 4.55 - 4.55 0.13 0.33 4.23
Ivth Quarter 4.23 4.23 0.12 0.33 3.90
0.52 1.30
III Opening Balance
Ist Quarter 3.90 - 3.90 0.11 0.33 3.58
Iind Quarter 3.58 - 3.58 0.10 0.33 3.25
IIIrd Quarter 3.25 - 3.25 0.09 0.33 2.93
Ivth Quarter 2.93 2.93 0.08 0.33 2.60
0.38 1.30
IV Opening Balance
Ist Quarter 2.60 - 2.60 0.07 0.33 2.28
Iind Quarter 2.28 - 2.28 0.06 0.33 1.95
IIIrd Quarter 1.95 - 1.95 0.05 0.33 1.63
Ivth Quarter 1.63 1.63 0.04 0.33 1.30
0.23 1.30
V Opening Balance
Ist Quarter 1.30 - 1.30 0.04 0.33 0.97
Iind Quarter 0.97 - 0.97 0.03 0.33 0.65
IIIrd Quarter 0.65 - 0.65 0.02 0.33 0.32
Ivth Quarter 0.32 0.32 0.01 0.33 - 0.00
0.09 1.30

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R
PARTICULARS I II III IV V

CASH ACCRUALS 2.98 3.82 4.72 5.52 6.34

Interest on Term Loan 0.63 0.52 0.38 0.23 0.09

Total 3.62 4.34 5.10 5.75 6.43

REPAYMENT
Repayment of Term Loan 0.65 1.30 1.30 1.30 1.30
Interest on Term Loan 0.63 0.52 0.38 0.23 0.09

Total 1.28 1.82 1.68 1.53 1.39

DEBT SERVICE COVERAGE RATIO 2.82 2.39 3.04 3.76 4.62

AVERAGE D.S.C.R. 3.28

Assumptions:
1. Production Capacity of Apricot Oil unit is taken at 75 Ltr per day. First year,
Capacity has been taken @ 30%.

2. Working shift of 10 hours per day has been considered.

3. Raw Material stock and Finished goods closing stock has been taken for 15
days.

4. Credit period to Sundry Debtors has been given for 15 days.

5. Credit period by the Sundry Creditors has been provided for 15 days.

6. Depreciation and Income tax has been taken as per the Income tax Act,1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 8 HP.

10. Selling Prices & Raw material costing has been increased by 3% & 2%
respectively in the subsequent years.
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
materials and content contained in Project report is for educational purpose and
reflect the views of the industry which are drawn from various research material
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considering specific requirement of the project, capacity and type of plant and
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intended for general guidance only and must not be considered a substitute for a
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