Industry Overview
Castor oil is extracted from the seeds of the
castor plant and is known for its numerous
medicinal and
industrial uses. It is widely used in
cosmetics,
pharmaceuticals, and as a
lubricant and
biodiesel. The demand for castor oil in the
pharmaceutical and
cosmetic industries makes it a highly lucrative business.
Scale and Profitability of Industry
Castor oil is a widely demanded product due to its versatility. The
profit margin is attractive because of the
high value-added products derived from castor oil. Manufacturing and selling castor oil can be scaled from a small-scale unit to a large
industrial operation.
Subsidy Opportunities
The government offers subsidies under
PMEGP,
MSME, and
National Food Processing Scheme for the establishment of oil extraction plants, including
castor oil processing plants.
Eligibility Criteria
- MSME registration
- Compliance with FDA regulations for cosmetic and food-grade oils
- Cold-press extraction machinery for premium oils
Project Cost and Subsidy
- Project Cost: ₹20 Lakhs to ₹50 Lakhs
- Subsidy: Up to 25-40% under MSME and PMEGP schemes.
To apply for the Food Processing Scheme, the following mandatory documents are required for new enterprises (Individuals/Firms) as outlined in the manual
1. PAN Card of concerned/all promoters.
2.Aadhaar Copy & Photo of all promoters/guarantors.
3. Address Proof: Any of the Officially Valid Documents (OVD) such as:
o Utility bill (not more than two months old) from any service provider (Electricity, telephone, post-paid mobile phone, piped gas, water bill).
o Property or Municipal tax paid receipt.
o Ration Card (Individual).
o Driving Licence
o Aadhaar Card.
o Voter ID Card.
4. Details of the site where the unit is to be established, including whether it is owned/rented/leased, along with proof (Lease/rent agreement should be for more than the loan repayment period).
5. Photocopy of Bank
6. Estimates and Quotation of all capital expenditure and machinery and equipment to be purchased. Statement/Bank Passbook for the last 6 months.
For existing enterprises with a turnover of less than 1 crore, similar documents are required, including PAN Card, Aadhaar, address proof, and site details.
If you need more specific information or additional documents, please let me know!
