Edible Oil Industry In Calicut Essay

5457 words - 22 pages

Operations Management at
Agrotech Pvt Limited
(Edible Oil Refining)

Group Number A8
I P Sudhir Kumar PGP16/002
Jayashree ML PGP16/024
Megha Jain PGP16/031
Pooja Sharma PGP16/036
Neeraj Kumar PGP16/033
Rohit Kumar PGP16/042
Boby Chaitanya V FPM
Piyush Kumar FPM

During the term project for Operations Management (OM-I), we had a great opportunity to learn and apply the various concepts and principles that we have learnt in the course. For a successful and enriching learning experience, we’d like ...view middle of the document...

6 Customers and market in India | |
| | |
3. | Manufacturing of Vanaspati Ghee | |
| 3.1 Block Diagram | |
| 3.2 Process Flow Diagram | |
| 3.3 Description of Process | |
| 3.4 Add-on processes | |
| | |
4. | Analysis and Discussion | |
| | |
5. | Job Design | |

1. Introduction
1.1 Oil manufacturing in India 

India is one of the world’s largest edible oil economies with 15,000 oil mills, 689 solvent extraction units, 251 Vanaspati plants and over 1,000 refineries employing more than one million people. The total market size is at Rs. 600,000 mn. And import export trade is worth Rs.130, 000 mn.
India having less production as compared to its high domestic demand in edible oils has to import 57% of its consumption requirements. India is also a leading producer of oilseeds, contributing 8-10% of world oilseed production and around 6% of the world’s production of edible oils. India is the fifth largest producer of oilseeds in the world, behind US, China, Brazil, and Argentina.
Groundnut, Soybean and Mustard/rapeseed, these three oilseeds, together account for 80 % of aggregate cultivated oilseeds output. Mustard seed alone contributes Rs.120, 000 mn turnover out of Rs.600, 000 mn of oilseed sector domestic turnover. Cottonseed, Copra and other oil-bearing material also contribute to the domestic vegetable oil pool. Currently, India accounts for 7.0% of world oilseeds output; 7.0% of world oil meal production; 6.0% of world oil meal export; 6.0% of world veg. oil production; 14% of world veg. oil import; and 10 % of the world edible oil consumption.
With steady growth in population and personal income, Indian per capita consumption of edible oil has been growing steadily. However, oilseeds output and in turn, vegetable oil production have been lagging behind consumption growth, making it necessary to import to meet supply shortfall.
Major Oilseeds | 2-Jan | 3-Feb | 4-Mar | 5-Apr | 6-May | 06-07* |
Groundnut | 7 | 4.1 | 8.1 | 6.8 | 8 | 4.4 |
Rape/Mustard | 5.1 | 3.9 | 6.3 | 7.6 | 8.1 | 7.6 |
Soybean | 6 | 4.7 | 7.8 | 6.9 | 8.3 | 8.7 |
Other Six | 2.6 | 2.1 | 3 | 3.1 | 3.6 | 2.9 |
Sub-Total | 20.7 | 14.8 | 25.2 | 24.4 | 28 | 23.6 |

Oilseeds production (Quantity in mn tonnes)
Edible oil or fat products can be classified into four categories, vegetable refined oil, hydrogenated oil (vanaspati), bakery fats/margarine, and de-oiled cakes. The industry mainly includes Ghanis, small scale expellers, solvent extractors, oil refiners and vanaspati manufacturers. 70% of oil produced is sold in the open market and remaining 30% is refined and sold as branded oil. After the extraction of oil, residual seeds are processed further by solvent extractors, to make solvent-extracted oil, most of which is used to make ‘vanaspati'.
The Indian edible oil industry is highly fragmented with a large number of small scale producers which includes ghanis that are mainly found in rural areas. Small scale...

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