neem oil extraction business plan

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Neem Oil Project Report, Business Plan

Table of contents, business plan for starting neem oil manufacturing unit, presumptions and assumptions in neem oil manufacturing project, legal compliances required for starting neem oil manufacturing project, area required to start neem oil manufacturing business, raw materials required to start neem oil manufacturing business, list of machinery and equipment required to start neem oil manufacturing business, the manufacturing process of neem oil, neem oil project report/ economics of neem oil manufacturing business, marketing strategies to promote your neem oil product, conclusion of manufacturing of neem oil.

Introduction to Neem Oil Project Report, Manufacturing Business Plan : For starting a Neem Oil extraction business-appropriate knowledge about the oil extraction method is essential. There are many techniques employed for industrial and commercial extraction of neem oil. Neem Oil extraction by using solvents such as ether, alcohol, and hydrocarbons is a popular process in this sector. The selection of the Neem Oil extraction method relies on the nature of the chemical compound that you are planning to obtain.

Commercially produced Neem Oil when treated using solvent lacks Azadirachtin. This kind of Neem Oil is not preferred for use on certified organic crops. The different methods of oil extraction generate different compositions of neem oil. It will be based on usage and the purpose of the extracted neem oil.

Neem Oil Project Report, Manufacturing Business Plan

Market potential of Neem Oil : The main usage of Neem Oil is seen in agriculture. In the agriculture industry, Neem Oil is commonly used as an insecticide, natural pesticide, and fungicide. The presence of Azadirachtin in neem oil helps in various applications when used in different dosages. Another industrial application is for preparing neem coated chemical fertilizer for instance urea.

Apart from agriculture, Neem Oil has extensive market potential as it is used in the cosmetic industry as well. In developing skincare, body care products, hair care, Neem Oil is a vital raw material. In the Ayurvedic cosmetic industry and herbal medicine, this Neem Oil is highly recommended nowadays, as it is an important ingredient.

For manufacturing set-up, a proper business plan is an operational tool to obtain Neem Oil in a proper way minimize risks and achieve the goal. According to the market analysis, identify what type of Neem Oil you plan to obtain. It also aids you to decide the appropriate procedure for extraction and requisite machinery. It is sensible to have a project report well before you launch the business. It will also assist you to calculate your start-up fund requisites. Design a business plan based on that and even include the various marketing strategies you have thought of for this business.

• Market potential of Neem Oil
• Presumptions and assumptions in Neem Oil Business
• License, permissions and registrations required to start Neem Oil Manufacturing Business
• Area or land required for starting Neem Oil Manufacturing Business
• Raw materials required for Neem Oil Manufacturing Business
• List of machinery required for starting Neem Oil Manufacturing Business
• Manufacturing process of Neem Oil
• Project economics of Neem Oil Manufacturing Business
• Marketing strategies to promote your Neem Oil
• The plant will be in operation for about 240 days per annum.
• The operating capacity is 60% for 1st year, 75% in the second year, 90% in the 3rd year.
• The interest on term loan for 12% per annum and on working capital will be 14% per year.
• You can expect profit percentage of 7% – 8% in the first year, later it increases based on the quality and marketing of your product.

For beginning the Neem Oil extraction business, you must first decide the legal pattern of your business. You can plan to start with less capital and can register your business as a sole proprietor or any business entity available in your region. You should check the various essential permits and licenses that must be obtained from the local authority.

• Register your business with ROC
• Obtain Trade license
• Get SSI registration
• Factory license is essential
• Food operator license is mandatory
• BIS certification is a must
• “NOC” from the pollution control board
• AGMARK certification
• Fire license must be acquired
• FSSAI is mandatory, as Neem Oil Manufacturing business is classified under a food processing industry

The area or space required to start Neem Oil Manufacturing Unit is 500 – 800 sq. mt. This will depend on the scalability of your business. As you need to set up and establish the production unit required for Neem Oil Manufacturing Process.

The major raw materials required are neem seeds, from which oil is extracted.

The list of machinery depends upon the type of manufacturing process which you wish to choose. Below is the list of mechanical pressing methods:

• Table Ghani
• Miscellaneous Assets
• Oil Expellers
• Other supporting machinery like electric motor and testing facilities
• Materials like storage tanks, furniture, packing tables, storage racks, etc.

Mechanical pressing method

The primary procedure of extraction consists of the grade-wise separation of seeds. Grading of seeds is performed according to the amount of oil content in the seeds and based on sizes as well. Firstly, the fruits are gathered in a drum, and the kernels are removed to obtain the seeds. Next, the seeds are woven dried, and then added into the oil extracting machine when the mechanical pressing method is employed.

The Neem Oil is produced by pressing by mechanical pressure and gathered in a drum. Finally, filtration is performed to separate the various unwanted elements left in the extracted oil to have a high-quality and pure neem oil.

Solvent Extraction Method

In the solvent extraction method, solvents such as petrol or white gasoline are added to the seeds after proper oven drying is accomplished. The solvents aid in extracting the Neem Oil out of the kernel up to a particular percent. Later the neem seeds could be pressed if necessary. The collected oil is stored in a silo where the pure Neem Oil is obtained from the crude oil.

In case if you miss this: Onion Oil Project Report .

Land and building construction on a rental basis: Rs. 3,00,000

Cost of Machinery: Rs. 2,39,500 

Pre-operative expenditure: Rs.29,500.

Fixed capital investment:

• Machinery: Rs. 2,39,500
• Pre-operative expenses: Rs. 29,500
• Total: Rs. 2,69,000

Working capital analysis:

• Neem seeds 60 tons @ Rs. 2000/ton: Rs. 1,20,000
• Scented Neem seed oil 500 lit. @ 60/lit.: Rs. 30,000
• Packing materials (plastic containers, cartons, etc.): Rs. 20,000
• Total: Rs. 1,70,000
• Wood 30 quintals @ Rs. 120/qtl.: Rs. 3,600
• Electricity 300 KWH @ Rs. 3.00: Rs. 900
• Total: Rs. 4,500

Staff and Labour:

• Skilled labour: Rs. 10,000
• Unskilled labour: Rs. 7,500
• Salesman: Rs. 3,000
• Accountant: Rs. 2,500
• Peon: Rs. 2,000
• Total: Rs. 25,000

Other expenses

• Rent: Rs. 2,500
• Transport and travel: Rs. 2,000
• Telephone: Rs. 400
• Stationery: Rs. 100
• Publicity: Rs. 1,000
• Sale tips: Rs. 1,000
• Other miscellaneous expenses: Rs. 2,000
• Taxes and levies: Rs. 500
• Total: Rs. 9,500

Total working capital per month = 1,70,000 + 4500 + 25,000 + 9,500 = Rs. 2,09,000.

Total Capital Investment:

• Fixed capital: Rs. 2,69,000
• Working capital: Rs. 2,09,000
• Total: Rs. 4,78,000

Cost of production (per annum):

• Depreciation on machinery and equipment @ 10%: Rs. 22,950
• Depreciation on furniture @ 20%: Rs. 2,000
• Recurring expenditure (per annum): Rs. 25,08,000
• Interest on total cap. Investment @ 14%: Rs. 66,920
• Total: Rs. 25,99,870

Turnover of Neem Oil Manufacturing Business

Neem seed oil turnover 92.4 MT @ Rs. 30,500/ton: Rs. 28,18,200 (Say Rs. 28,20,000).

Profit in Neem Oil production

Profit = Rs. 28,20,000 – Rs. 25,99,870 = Rs. 2,20,130

Net profit ratio = Profit x 100/Turnover = 7.8%

Break even analysis:

Fixed cost (per annum):

Total depreciation: Rs. 24,950

Interest @ 14%: Rs. 66,920

40% salary: Rs. 1,20,000

40% other exp. Except rent: Rs. 33,600

Rent: Rs. 30,000

Total: Rs. 2,75,470

B.E.P. = FC x 100 / FC + profit = 55%.

Focus on business dealings with the industries that need Neem Oil as raw material. It is always recommended to launch at least one product with your brand name for retail. Develop your website. Register your business in popular B2B platforms so that people will identify and recognize your brand. Stress on building a strong distribution network for your product.

You may also check this: Flour Mill Project Report .

For a person who is interested to invest in the agricultural sector, the Neem Oil Manufacturing business could be planned for earning good profits with less investment.

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Dear sir. I am interested in manufacturing of neem oil and product like phenyl .hand wash Nd soap .kindly guide me to start this business also the training if can arrange about manufacturing and the machineries also the cost involved

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How to Start Neem Oil Extraction Business

If you are planning to start a neem oil extraction business, you have landed at the right place. Here in this article, we have covered all the aspects of establishing the business including the manufacturing process, legalities, and much more.

Neem oil extraction business opportunity demands adequate knowledge about the oil extraction process. There are several techniques used in the industrial and commercial extraction of neem oil. Neem oil extraction using solvents like alcohol, ether, and hydrocarbons is the most used process in the industry. The choice of the neem oil extraction process depends on the nature of the chemical compound that’s being extracted.

Commercially produced neem oil treated with the solvent does not contain Azadirachtin. This type of neem oil is not suitable for use on certified organic crops. A different process of oil extraction produces different compositions of neem oil. It all depends on the usage and the purpose of the extracted neem oil.

For an entrepreneur interested to invest in the agricultural sector , the neem oil extraction business can be initiated with low capital investment.

Table of Contents

Demand for Neem Oil

The main application of neem oil is in agriculture. In the agriculture industry, neem oil is generally used as a natural pesticide, insecticide, and fungicide. Containing different ppm azadirachtin in neem oil, it is used for different purposes in different dosages. Another industrial use is neem-coated chemical fertilizers like urea.

Other than agriculture neem oil has wide market potential in the cosmetic industry. In manufacturing skincare, haircare, and body care products, neem oil is an essential raw material. In the ayurvedic cosmetic industry which is now booming, neem oil is an essential ingredient.

Suggested Read: Profitable Medicinal Herbs You Can Grow Commercially

Neem oil is also an essential product in the herbal medicine industry.

Develop a Business Plan for Neem Oil Extraction

As with any manufacturing establishment business plan is an effective tool to have in neem oil extraction. According to the market study report determine what type of neem oil you will be extracting. It also helps you to determine the appropriate method and machinery. The business plan document will also help you to calculate your startup capital requirement. Craft a business plan on the basis of that. Determine your marketing strategy.

Legal Compliances for Neem Oil Extraction

In initiating the neem oil extraction business you need to first determine the legal pattern of your business. You can consider starting with limited expenses and can register your business as a sole proprietor or any business structure available at your location. You will need to obtain the required permits and licenses from the local authority.

Manufacturing Process and Machinery

a) Mechanical Pressing Method

The primary process of extraction consists of the grade-wise separation of seeds. Grading of seeds is done according to the amount of oil content in the seeds and with sizes as well. Firstly, the fruits are collected in a drum, and the kernels are separated to obtain the seeds. Later the seeds are woven dried and then feed into the oil-extracting machine in case of the mechanical pressing method.

The neem oil is obtained by pressing it mechanically and collected in a drum. Thus filtration is done to remove the various unwanted particles left in the extracted oil in order to obtain pure neem oil.

b) Solvent Extraction Method

In the solvent extraction method, solvents like petrol or white gasoline are mixed with the seeds after oven drying. The solvents help in extracting the neem oil out of the kernel up to a certain percentage. Added to that the neem seeds are pressed if needed. The resulting oil is stored in a silo where the pure neem oil is recovered from the crude one.

Promotion – How to Market Neem Oil

Concentrate to have business tie-ups with the industries that use neem oil as raw material. It is always advisable to launch at least one product with your brand name in retail. Create your own website.  Register your business with the popular B2B portals. Concentrate on establishing a strong distribution channel for your product.

Next What Business Research Team

The Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium-scale businesses.

Alchem Learning

How to Start Neem Oil Extraction Business

Welcome to our guide on starting a neem oil extraction business. Neem oil, derived from the neem tree’s seeds, is known for its various beneficial properties and uses. Starting a neem oil extraction business can be a profitable venture, and here are the steps to get you started.

Step 1: Research and Planning

Begin by conducting thorough research on neem oil extraction, its uses, market demand, and potential competitors. Create a comprehensive business plan outlining your goals, target market, budget, and marketing strategy.

Step 2: Obtain Necessary Equipment

Invest in the required equipment for neem oil extraction, such as oil expellers, filters, and storage tanks. Ensure that your equipment meets safety and quality standards for effective oil extraction.

Step 3: Source Neem Seeds

Locate reliable suppliers of neem seeds. The quality of your neem oil will depend on the quality of the seeds you use for extraction. Establish partnerships with reputable suppliers to ensure a steady supply.

Step 4: Extraction Process

Follow these steps for neem oil extraction:

• Clean the neem seeds to remove dirt and debris.
• Crush or grind the seeds to prepare them for oil extraction.
• Use an oil expeller to extract the oil from the seeds.
• Filter the extracted oil to remove impurities.

Step 5: Quality Control

Implement a quality control process to ensure that the neem oil meets industry standards. Regularly test the oil for purity, potency, and other quality factors. This step is crucial to building a reputable brand.

Step 6: Packaging and Branding

Design a simple and informative packaging for your neem oil products. Include relevant information about the product’s benefits and usage instructions. Keep in mind your commitment to not using images.

Step 7: Marketing and Distribution

Create a marketing strategy to promote your neem oil products. Utilize online platforms, social media, and networking to reach your target audience. Explore distribution options, such as selling through retailers or setting up an online store.

Step 8: Legal and Regulatory Compliance

Ensure that your neem oil extraction business complies with all local regulations and permits. This includes safety standards, labeling requirements, and any environmental regulations.

Step 9: Build Relationships

Build strong relationships with your customers and suppliers. Respond to customer inquiries promptly and maintain transparent communication with your suppliers to ensure a smooth business operation.

Step 10: Scaling Up

As your neem oil extraction business grows, consider expanding your product range or entering new markets. Continuously monitor market trends and adapt your business strategies accordingly.

Starting a neem oil extraction business requires careful planning, dedication, and a commitment to quality. By following these steps and maintaining a customer-focused approach, you can establish a successful neem oil business.

Frequently Asked Questions

1. what is neem oil.

Neem oil is a natural oil derived from the seeds of the neem tree. It is known for its various applications in skincare, agriculture, and health due to its beneficial properties.

2. Why should I start a neem oil extraction business?

Starting a neem oil extraction business can be lucrative due to the growing demand for natural and organic products. Neem oil’s versatility and health benefits make it a sought-after commodity in various industries.

3. What equipment do I need for neem oil extraction?

You’ll need oil expellers, filters, and storage tanks for neem oil extraction. These machines are essential for efficiently extracting oil from neem seeds while maintaining quality.

4. How do I ensure the quality of my neem oil?

Implement a rigorous quality control process. Regularly test the oil for purity, potency, and other quality factors. This will help you maintain consistent and high-quality products.

5. Can I use any type of neem seeds for oil extraction?

No, it’s important to use high-quality neem seeds for optimal oil extraction. Establish partnerships with reputable suppliers to ensure a steady supply of quality seeds.

6. How do I market my neem oil products?

Create a comprehensive marketing strategy that includes online platforms, social media, and networking. Highlight the benefits of your neem oil products and target the right audience.

7. What packaging is suitable for neem oil products?

Design informative packaging that includes usage instructions and benefits of neem oil. Keep the packaging simple and in line with your commitment to not using images.

8. Are there any legal considerations for this business?

Yes, ensure compliance with local regulations, safety standards, and labeling requirements. Obtain the necessary permits and licenses to operate your neem oil extraction business.

9. How do I expand my neem oil business?

Monitor market trends and consider introducing new products or entering new markets. Continuously adapt your strategies to meet evolving customer demands.

10. What are the benefits of neem oil in agriculture?

Neem oil is used as a natural pesticide, fungicide, and insect repellent in agriculture. It can help control pests and diseases while being environmentally friendly.

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References:

• How to Start a Small Business: A Step by Step Guide | Amazon Business
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• How to (Realistically) Start an Online Business That (Actually) Grows | BigCommerce
• How to start a business: Step by Step
• The complete guide to starting a business | Legalzoom
• How to Start a Business – Ramsey
• 10 Steps to Starting a Business | Coursera List
• How to Start a Business in 6 Steps | Mailchimp
• How to Start a Business in 2023: A 10-Step Guide
• 70 Small Business Ideas for Anyone Who Wants to Run Their Own Business
• 5 Steps to Start Your First Business – YouTube
• How to Grow a Successful Business
• How to Start a Small Business (Step-by-Step Guide) | ADP
• How to Start a Small Business at Home: 5 Tips for Success
• 10 Key Steps to Creating a Business (2023 Guide) | Wolters Kluwer
• How to Start a Business: Steps to Start Up a Business | Square
• 10 steps to start your business | U.S. Small Business Administration Lock
• How To Start A Business: A Step by Step Guide For 2023
• How To Start A Business In 11 Easy Steps (2023 Guide) – Forbes
• How to Start a Business From Scratch in 7 Steps | The Hartford
• How to Start a Business: 13 Steps to Launch – Shopify
• How to Start a Business in 15 Steps – NerdWallet
• How to Start a Business: A Startup Guide for Entrepreneurs
• How to Start a Business in India – The Complete Guide

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How to Start Neem Oil Extraction Business

Do you want to start a small-scale neem oil extraction business? Find here a detailed neem oil extraction business plan sample checklist for your ready reference.

Neem is one of the most significant contributors to Ayurveda. The scientific name of neem is Azadirachta Indica. Basically, neem is a native plant of India with incredible benefits for curing our skin and hair problems.

Neem leaves, fruits, flowers, and twigs have great pharmaceutical value. Generally, neem oil is one of the most premium products. It has several uses in the cosmetics and consumer goods industry. The neem oil extraction process is simple. And any individual can start a neem-based small-scale industry with small capital investment.

Scope of Neem Oil Extraction Business

Neem provides a cure for innumerable health problems. The basic list includes

• Dryness of skin
• Skin problems like eczema
• Hair problems like dandruff & hair fall control.
• Skin blemishes and uneven complexion

Neem is also a natural mosquito repellant and prevents diseases like Dengue. Unlike synthetic mosquito repellants, it has no side effects.

Though many people have a Neem tree in their garden, very few believe that they can actually realize its socio-environmental and commercial value.

Steps  to Start Neem Oil Extraction Business

Steps in establishing neem oil extraction business

• Manufacturing

Distribution

Quality control

Neem Oil Extraction process

Broadly, you can extract neem oil from neem kernels or neem leaves. However, the manufacturing operation requires some basic machinery.

• Mixer grinder/ food processor
• Boiling Pot
• Measuring cylinder

Neem Oil Extracting Process from Leaves

First of all, you will need to dry and desiccate the neem leaves. Then shred these to form smaller leaf segments. Add the water and heat the neem water solution till boiling. During the boiling process, the liquid gradually becomes green in color. It also becomes more viscous as the oily constituents get leached from the shredded leaves into liquor.

Neem Oil Extraction Process from Kernels

You can also extract the neem oil  from small neem fruits. Basically, neem fruits are spherical in shape. Actually, you can derive a greater viscosity of oil by squeezing these small fruits, using a crusher.

First of all, separate the neem kernels from the neem seed shells. Then, gently pound and dehusk the kernels to remove their peels. Then pour these processed kernels into a basket to aid separation. Ensure that the seeds are not rotten.

Put neem seeds into a chopper and crush them. Here, you can use stone crushers for this purpose. In order to grind the seed kernel, one can also use a small food processor. During the crushing process, the seeds are gradually converted to semi-powdered form so that oil could be filtered out.

Pour the powdered seeds into a metallic bowl. Pour the water into the bowl and mix. For every 10 parts of powdered seeds, add one part of water.

Generally, a 1-gram neem kernel will give a yield of 100 ml. During the process, one can see 100% organic oil coming out. Filter the oil and keep it in an air-free bottle. Ensure that the ambient temperature does not exceed 23ºC. Prior to usage, you must heat the oil for 5 minutes so that its temperature goes past 55ºC.

For large-scale neem oil extraction, you will need to use advanced techniques and equipment. The screened dry seeds are directly poured into the machine bucket.

Commercial Use of Neem Oil

Neem oil is one of the most effective and important ingredients for producing several products. The major application area is cosmetics. Neem oil is used in soaps , moisturizers, face packs, and facial cleansers.

Neem oil is an effective moisturizer for the skin. Besides removing dryness it helps to maintain an even complexion. It has antiseptic properties as well.

Derived products from Neem Oil

If you add neem oil during the saponification process, the finished product is neem soap. Neem  soap has great commercial value and medicinal benefits. Consumers are encouraged to take regular neem bath

Generally, manufacturers mix a portion of Neem oil with coconut oil and olive oil to make it useful as hair oil . The desirable attributes of coconut and olive are hence added to the therapeutic qualities of Neem. Even you can add mustard oil to it.

Mosquito repellant

You can use neem water solution or neem oil of reduced viscosity in spray form to keep your home safe from insects or mosquitoes.

Facial cleanser/face pack

Also, one can mix the neem oil with glycerine to form a facial cleanser or scrub which helps to remove skin problems such as excessive oiliness or acne. It also renders an even complexion on the skin and a glow on the face.

Neem-based herbal therapies

One can use neem oil in beauty treatments. In addition to neem, you will need to add Gulab Jal and turmeric to make your skin radiant and beautiful.

Winter cream

Being a natural moisturizer, neem protects skin from getting dry during the winter season. Hence, neem is an effective ingredient in making lotion for skincare during the winter.

Packaging & Marketing 0f Neem Oil Extraction Business 

Basically, you can pack neem oil into bottles of various sizes or volumes. However, you must apply the labels on the bottles with the name of the manufacturing company and other details such as ingredients or directions for usage.

Preservation

Bottled neem oil can be refrigerated to preserve its herbal value.

Marketing strategies

It is important that the herbal products formed from the various parts of the neem are marketed effectively to make this eco-friendly venture successful. Many reputed companies already exist in this sector. So for a new firm to get the name is a challenging matter.

So, you must promote the neem oil extraction business through customer awareness camps, product demonstrations, etc. Manufacturers must use an attractive tagline such as ‘Go green’ or ‘Living in the lap of nature. Such green marketing campaigns will create a desirable brand image for the manufacturing firm in the market.

Advertising requires sufficient capital investment. Manufacturers can get financial aid like bank loans at minimum interest, to meet the expenditures.

Some of the most effective ways of promotion:

• Newspaper advertisements
• TV commercials
• Online portals
• Participation in trade fairs

Manufacturers must keep track of present and prospective customers. They must expand their distribution channels to build their customer base. The logistics department must ensure that there are no losses in terms of product quality or quantity during distribution to the customers.

You must hire qualified staff to ensure the finished products ranks high in terms of quality. There should be no discrepancy between desirable and actual product quality. Finally, you must procure quality raw materials to get quality products from neem oil extraction.

About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.

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Neem Oil Extraction Methods, Process

Table of contents, uses of neem extracts, agricultural use of neem oil, how does neem oil work, extraction procedure, recovery of extracted oil, equipment used for the neem oil extraction process:, mechanical press method:, steam distillation extraction:, solvent extraction:, super critical extraction:, aqueous extraction:, cost of neem oil extraction machine:, storage process of neem oil:, neem oil extraction process.

Today, we discuss the topic of neem oil extraction methods and process.

What is Neem oil? Neem oil comes from the seed of the tropical Neem tree, also called as Indian lilac. Neem oil is formed from the fruits and seeds of the Neem tree, a tree that’s native to India but also grows in other tropical areas. The scientific name of the Neem tree is Azadirachta indica , is a member of the mahogany family and grows naturally in India and Sri Lanka.

Neem oil is a naturally occurring pesticide creates in seeds from the Neem tree. It has a wide history of use as a folk remedy around the world and has been used to treat many conditions. It has a harsh odor, it’s high in fatty acids and other nutrients, and it’s used in several beauty products like skin creams, body lotions, hair products, and cosmetics.

Neem tree can grow on a wide range of soils up to pH 10 which makes it one of the most versatile and important trees in Indian sub-continent. It is the most important of the commercially obtainable products of Neem for organic farming and medicines.

Neem extracts can be used as insecticides, pesticides, and fungicides. Neem oil has antibacterial, antiviral properties and it can be used in skin and dental problems. Neem products are being used for malaria, fever, pain and as a contraceptive. Neem oil is being used in cosmetics, lubricants, and fertilizers. Neem bark can be used as villages for rope making. It is also used in soap manufacture.

In addition to its medicinal uses, Neem oil is found to be useful for protecting crops against pests, as it provides natural pesticidal properties . Among its active compounds, azadirachtin affects insects the most, causing 90 percent of the pesticidal cause on most pests.

Neem oil also has other broad effects on insects that are; it helps alter the development, inhibits feeding, hinders reproduction and suppresses the fertility of pests. Pollinator insects, such as bees, are not likely to be harmed by Neem oil since it should be ingested in order for it to take effect. It’s nontoxic to birds, mammals, and other plants, but it’s moderately toxic to fish and other aquatic animals.

When used properly, Neem oil can also help get rid of plant insects that are difficult to eradicate, such as spider mites. However, to successfully get rid of spider mites, you have to apply Neem oil on plant frequently (ideally once a week or more), preferably when the temperature is below 90 degrees Fahrenheit and when the plant is not water-stressed.

Read: NFT Farming in India .

What are some products that contain Neem oil? Neem oil and several purified components are used in over 100 pesticide products. They are useful for a wide variety of crops and ornamental plants for insect control. Neem oil can be formulated into granules, wettable powders, dust, or emulsifiable concentrate.

Neem oil is prepared with many components. In Neem oil Azadirachtin is the most active. Neem oil reduces insect feeding and acts as a repellent . It interferes with insect hormone systems, making it harder for insects to grow and lay eggs. Azadirachtin can repel and decrease the feeding of nematodes. Other components of Neem oil kill insects by hindering their capability to feed. However, the exact role of each component is not known.

Neem starts bearing fruits after five years and comes to full bearing at the age of 10-12 years. Fruit yield is 5 to 20 kg per tree per year in the initial years. A mature tree produces 35 to 50 kg fruit/year. Oil yield varies from 40 to 43% of seed on a dry weight basis. Highest Neem oil content has been reported from the Banswara region of Rajasthan (43.2%), while the lowest oil yield of 32.4% has been reported from the Jaisalmer region. It has been observed that as rainfall in an area increases oil content increases. Among the International provenances tested, Bangladesh provenance has yielded maximum Neem oil content (48.6%).

Neem oil extraction process:

The extraction process of Neem oil can be explained below;

The oil can be obtained through pressing or crushing of the seed kernel both through cold pressing and through a process incorporating temperature controls 40 – 50 °C. Neem seed oil can be obtained by solvent extraction of the Neem seed, fruit, oil, cake or kernel. A large industry in India extracts this oil remaining in the seed cake using hexane. This solvent-extracted oil is of lower quality as compared to the cold pressed oil and is generally used for soap manufacturing. Neem cake is a by-product obtained in the solvent extraction method for Neem oil.

40g, 50g, and 61.4g of Neem seeds, leaves and barks respectively, were every weighed and put into the thimble of the Soxhlet extractor. 300ml of the solvent or ethanol was measured with a measuring cylinder and poured into the still pot of the Soxhlet extractor, the apparatus was then coupled and the condenser unit was connected to an overhead water tank to cool rising solvent vapor. The heat source was a Bunsen burner operating at a temperature of 68°C. The solvent evaporated during the distillation path, thimble, and the expansion adapter after which it condensed at the condenser unit of the Soxhlet extractor. At this position, the condensed vapor returned to the thimble as liquid droplets and got in contact with the sample therein. It then broke the sample membranes to release the Neem oil content which accumulated with the solvent at the siphon (or reflux arm) of the Soxhlet extractor. When the solvent in the thimble rose to the point of the siphon top, the entire content of the thimble and siphon was emptied back into the still pot of the Soxhlet extractor. The process was repeated severally for about nine refluxes in three hours after which the extraction process was completed. The temperature was regulated using a thermometer.

Read: Tips for Successful Chicken Farming .

After extraction, the resulting liquid was a mixture of the solvent used for extraction and the Neem oil extract. The liquid was discharged into a Liebig condenser to divide the solvent from the oil extract. The mixture was distilled at a temperature of 68°C until the Neem oil extract was completely free of the solvent. Diethyl ether was then used to purify the Neem oil extract after which it was exposed to the atmosphere for a while to ensure the elimination of the solvent odor.

The equipment used in the Neem oil extraction process are;

Drying oven, grinder, laboratory test sieve, mixture extractor, and filter, evaporator, condenser, and Neem oil storage tank.

Different methods for Neem oil extraction:

Neem oil is generally extracted from Neem seeds. Neem oil is usually light to dark brown depending on the time of harvest as well as growing conditions before harvesting. It is bitter and smells like peanuts combined with garlic. Neem oil is generally used in agricultural products, cosmetics, and pharmaceuticals.

Different types of Neem oil extraction technologies are available,

• Mechanical Pressing
• Steam Distillation Extraction
• Solvent Extraction
• Super Critical Extraction, and
• Aqueous Extraction

Basically, in India mechanical method is mainly used. The Kernels contain about 50 to 65 % oil. There are merits of mechanical procedure. The supercritical procedure is now being popular because of maximum yields and eco-friendly.

How to make Neem oil using mechanical pressing methods?

This method is one of the methods of processing Neem oil. Neem seeds are placed in a tub or container and a form of press or screw is used to squeeze the seeds until the oil is pressed out. The mechanical extraction process of Neem seeds performs using hydraulic pressing equipment. Untreated seed particles to be pressed with different pressures to determine the optimum pressure. The pressure was started at 138 Bar as the oil started to flow out of the seedbed, and closed at 412 bars since the oil yield relatively constant at the pressure above 413 bars. The mechanical extraction process was performed for 25 minutes when the oil has stopped flowing out. Neem oil yield measurement was conducted using the mass balance. Neem seeds kernels are placed into a vessel and either a screw or some of form of press is used to squeeze the kernels under pressure until the Neem oil is pressed out and collected. The Neem oil gets by pressing it mechanically and collected in a drum.  This filtration is done to remove the various unwanted particles left in the extracted oil in order to get pure Neem oil.

How to make Neem oil using a steam distillation process?

This method uses steam and high pressure to extract the Neem oil. The kernels are heated with steam to increase the Neem oil flow, then squeeze under high pressure. Most of the Neem oil is extracted from the kernels. This procedure makes the extraction process easier. As for the steam distillation process, the dried Neem seeds are put into the steam boiler. Then they get swollen by steaming, thus Neem oil in squeezing becomes very easy. This steaming process is accompanied by increasing pressure in the boiler which drives the oil out of Neem seeds.

Steam distillation is a separation method which is used for separating a mixture of components which are heat sensitive by using steam. The principle is based on variation in the boiling point of reducing the partial pressure of volatile components. Steam distillation has important application in petroleum refineries, extraction of volatile compounds of plants which were used in perfumery and flavoring industries. Catnip is extracted using steam distillation. The steam distillate content has two parts, essential oil, and distillation water. The steam distillate is subjected to solvent extraction where the secondary essential oil is extracted.

The oil is extracted from the entire plant using a distillation element consisting of a distillation tank, a condenser, and a separator. Freshly harvested grass as such or after cutting into little pieces is loaded into the distillation tank. After closing the lid tightly, steam is entering into the tank. Steam and the oil vapor condense into liquid in condenser & are collected in the separator.

In the solvent extraction process, the solvent, usually hexane is mixed with Neem seeds after oven drying. Or the added Neem seeds can be pressed if wanted. The solvent extraction process is working on the principle of countercurrent and moving bed, permitting excellent penetration and percolation of solvent for absolute Neem oil extraction. The extracted Neem oil is collected by vaporizing solvent out for later recovery.

The supercritical fluid extraction process is the most effective and efficient way to extract valuable constituent botanicals. This is the process of separating one component or the extractant from another or the matrix using supercritical fluids that is carbon dioxide as the extracting solvent. Carbon dioxide solvent is the king of extraction solvents for botanicals. Extraction conditions for supercritical CO2 are above the critical temperature of 31°C and pressure of 74 bar. Supercritical fluids are extremely compressed gases, which have combined properties of gases and liquids in an intriguing manner. Supercritical fluids can lead to reactions, which are difficult or impossible to achieve in conventional solvents. It is a fast procedure completed in 10 to 60 minutes. A supercritical extraction fluid can be separated from analyte by simply releasing pressure, leaving almost no trace and yields a pure residue.

The aqueous extraction is the simplest method and most used is the extraction of water. It consists of crushing or grinding the seed or Neem leaves, put in water, strain into the thin fabric and collect the Neem extract. This Neem oil extract can be used in a spray for the control of pests without modification.

Neem oil extraction machine cost is approximately Rs 1.8 Lakh/Piece and

Neem Oil cost will be Rs 200/ Kilogram

Store Neem oil in the refrigerator, or in an area that is cool and dark so that it will keep longer. It must keep for a year or two. Make sure you label it appropriately wherever choose to store it. However, Neem oil can solidify at low temperatures.

That’s all folks about Neem oil extraction methods from seeds.

Read: Types of Greenhouse .

i want the full details on large and small scale production and benifit and cost ratio of neem oil

I want file details on the extraction of been oil from the neem seed manually.

Extraction of neem oil from super critical method: Availability of machine Prices Yield and the quality of the product

Where can I get the project report for different types of processess

How long do you have to dry the neem seeds after harvest before pressing for oil? And after drying the seeds, how long can you store the seeds before pressing for oil? Thank you.

Can I use neem oil to control weeds?

I’m very interested in this business. Thanks

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Detailed Project Report on neem oil extraction plant

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NEEM OIL EXTRACTION PLANT  [CODE NO.3511]   Neem oil is a vegetable oil pressed from the fruits and seeds of the neem (Azadirachta indica), an evergreen tree which is endemic to the Indian subcontinent and has been introduced to many other areas in the tropics. It is the most important of the commercially available products of neem for organic farming and medicines. Neem oil varies in color; it can be golden yellow, yellowish brown, reddish brown, dark brown, greenish brown, or bright red. It has a rather strong odor that is said to combine the odours of peanut and garlic. It is composed mainly of triglycerides and contains many triterpenoid compounds, which are responsible for the bitter taste. It is hydrophobic in nature; in order to emulsify it in water for application purposes, it is formulated with surfactants.   Azadirachtin is the most well known and studied triterpenoid in neem oil. The azadirachtin content of neem oil varies from 300ppm to over 2500ppm depending on the extraction technology and quality of the neem seeds crushed. Nimbin is another triterpenoid which has been credited with some of neem oil's properties as an antiseptic, antifungal, antipyretic and antihistamine.[1] Neem oil also contains several sterols, including (campesterol, beta-sitosterol, stigmasterol). COST ESTIMATION Plant Capacity                                             5.00 MT./day        Land & Building (4000 sq.mt)                 Rs. 2.25 Cr Plant & Machinery                                      Rs. 2.50 Cr Working Capital for 2 Months                 Rs. 2.94 Cr Total Capital Investment                         Rs. 7.91 Cr Rate of Return                                          33% Break Even Point                                      49% INTRODUCTION     OCCURRENCE AND PROPAGATION OF NEEM     PROPERTIES     PROPERTIES OF NEEM OIL     COMPOSITION OF NEEM     USES     RAW MATERIALS     METHODS FOR OBTAINING NEEM SEEDS     USES AND APPLICATION OF NEEM     AGRICULTUREL USAGE OF NEEM PRODUCTS     PILOT SCALE PROCESS SOLVENT EXTRACTION PLANT FOR NEEM SEED OIL     MARKET SURVEY PRODUCTION DATA OF NEEM OIL IN INDIA     DOMESTIC MARKET OF NEEM AND NEEM OIL     IMPORT DATA OF NEEM OIL     EXPORT DATA OF ORGANIC NEEM OIL DEMAND OF NEEM CAKE     PRESENT MANUFACTURERS/SUPPLIERS/EXPORTERS     MANUFACTURING PROCESS OF NEEM OIL     METHOD OF EXTRACTION FOR PURE NEEM OIL     PROCESS IN DETAILS     B.I.S. REQUIREMENT FOR NEEM KERNELS AND DEPULPED    NEEM SEEDS FOR OIL MILLING     SPECIFICATION AND TESTING OF NEEM OIL     TEST FOR COLOUR OF SOAP     YIELD OF NEEM OIL AND CAKE     MATURITY STORAGE AND PRESSING OF SEEDS     FLOW CHART     ALCOHOL EXTRACTION FLOW SHEET CUM SOLVENT RECOVERY     DETAILED DESCRIPTION OF NATURE NEEM UREA COATING POWDER     METHODS OF NEEM COATED UREA     METHOD OF COATING OF UREA PRILLS WITH NEEM OIL WATER EMULSION     PLANT LAYOUT     SUPPLIERS OF RAW MATERIALS     SUPPLIERS OF PLANT & MACHINERY     BUYER OF NEEM OIL              APPENDIX – A:  1.      COST OF PLANT ECONOMICS        2.      LAND & BUILDING                                        3.      PLANT AND MACHINERY                                    4.      FIXED CAPITAL INVESTMENT                               5.      RAW MATERIAL                                           6.      SALARY AND WAGES                                       7.      UTILITIES AND OVERHEADS                                8.      TOTAL WORKING CAPITAL                                  9.      COST OF PRODUCTION                                    10.      PROFITABILITY ANALYSIS                                11.      BREAK EVEN POINT                                      12.      RESOURCES OF FINANCE                            13.      INTEREST CHART                                        14.      DEPRECIATION CHART                                    15.      CASH FLOW STATEMENT                                    16.      PROJECTED BALANCE SHEET        

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Project Report on Extraction of Neem Oil

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• Start date Nov 16, 2011

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National Research Council (US) Panel on Neem. Neem: A Tree For Solving Global Problems. Washington (DC): National Academies Press (US); 1992.

Neem: A Tree For Solving Global Problems.

• Hardcopy Version at National Academies Press

8 Industrial Products

Beyond all the possible pesticides and pharmaceuticals, neem provides many useful and valuable commonplace materials. For instance, oil extracted from the seeds goes into soaps, waxes, and lubricants, as well as into fuels for lighting and heating. The solid residue left after the oil is removed from the kernels is employed as a fertilizer and soil amendment. In addition, wood from the trees is valued for construction, cabinetry, and fuel. The bark is tapped for gum and extracted for tannins and dental-care products. The leaves are sometimes used for emergency livestock feed. And the profuse flowers are a prized source of honey.

Of all these products, the oil is perhaps the most commercially important. In composition, it is much like other vegetable oils, composed primarily of triglycerides of oleic, stearic, linoleic, and palmitic acids. 1

To obtain neem oil, the seeds are first broken open and the kernels separated. The kernels are then pressed in industrial expellers or in hand- or bullock-operated wooden presses (ghanis). The oil yield is sometimes as high as 50 percent of the weight of the kernel.

This "cold-pressed oil" is mainly used in lamps, soaps, and other nonedible products. It is generally dark, bitter, and smelly. Unlike most vegetable oils, it contains sulfur compounds, whose pungent odor is reminiscent of garlic.

A large industry in India extracts the oil remaining in the seed cake using hexane. This solvent-extracted oil is not as high quality as the cold-pressed oil, but it also goes into certain soaps and consumer products.

In India, neem ingredients are found in many popular consumer goods. Neem oil, for instance, has been a major ingredient in soaps for at least 50 years. Its antiseptic properties have been used to particular advantage in the manufacture of special medicated (more...)

Purifying neem oil is an elaborate and costly process at present. In one method, the smelly sulfur compounds are distilled off, which frees the oil from both odor and susceptibility to rancidity (because it also removes the free fatty acids). This process has long been used industrially.

As an alternative to pressing out the oil, the kernels can be extracted first with alcohol and then with hexane. 2 Alcohol removes the bitter and odoriferous compounds; hexane recovers the oil. This stepwise extraction upgrades both meal and oil. On the other hand, it requires costly solvents and complex facilities. So far, at least, little oil has been produced this way.

Neem Oil in India

The neem trees occurring throughout India represent a large, although very scattered, resource. Already, neem oil is a common commodity traded freely in the markets, but much more could be produced. It has been estimated that India's neems bear about 3.5 million tons of kernels each year and that, in principle, about 700,000 tons of oil might be recoverable. The annual production in the late 1980s was only around 150,000 tons. (About 34 tons of neem oil were exported in 1990 valued at 300,000 rupees.)

To increase the amount of oil harvested, the Khadi and Village Industries Commission has pioneered various aspects of processing the fruit and seeds over the past two decades. This grass-roots organization located in Pune has been the leading advocate for neem oil as a resource for India's villagers. Already, it has created the makings of a major village industry, developed on a rational and organized basis.

One difficulty, as with most oilseeds of the forest, is that neem must be harvested during the wet season, and without local drying facilities the fruits and seeds rapidly deteriorate and become contaminated with aflatoxin (see page 53). Ideally, the fruits should be depulped without delay and the seeds thoroughly dried. The Khadi and Village Industries Commission has devised and popularized simple methods for depulping, drying, and decorticating neem products, even in the remotest villages.

Some of the many everyday uses for neem oil in India are discussed below.

India's supply of neem oil is now used mostly by soap manufacturers. Although much of it goes to small-scale specialty soaps, large-scale producers also use it, mainly because it is cheap. Generally, the crude oil is used to produce coarse laundry soaps. However, more expensive soaps are made by saponifying the crude oil and distilling the resulting fatty acids before adding the lye. The resulting almost colorless and odorless product is suitable for top-quality toilet and laundry soaps. 3

Neem is perceived in India as a beauty aid. Powdered leaves, for example, are a major component of at least one widely used facial cream. Purified neem oil is also used in nail polish and other cosmetics.

Neem oil is nondrying, and it resists degradation better than most vegetable oils. In rural India it is commonly used to grease cart wheels. It could find many similar lubrication applications in other locations, especially in village settings in the warmer parts of the world where neem can be grown.

• FERTILIZERS

Neem has demonstrated considerable potential as a fertilizer. For this purpose, neem cake and neem leaves are especially promising.

The residue left after the oil has been removed varies widely in composition. However, the broad ranges in composition are:

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This so-called ''neem cake" has considerable local potential. Although too bitter for animal feed, it seems to have unique promise as a fertilizer. It contains more nitrogen, phosphorus, potassium, calcium, and magnesium than farmyard manure or sewage sludge. 4 It is widely used in India to fertilize cash crops, particularly sugarcane and vegetables. Plowed into the soil, it protects plant roots from nematodes and white ants, probably due to its content of the residual limonoids.

Accra plains, Ghana. Stacks of neem firewood for sale are a common sight beside many roads in West Africa. (E.S. Ayensu)

Surprisingly, neem cake sometimes seems to make soil more fertile than calculations predict. 5 This is apparently due to an ingredient that blocks soil bacteria from converting nitrogenous compounds into (useless) nitrogen gas. When mixed with urea, for example, neem cake cuts down on the amount of urea converted to nitrogen gas in the soil. So far, this finding, which might prove to be a major breakthrough, has not been pursued beyond the laboratory. If it proves real in everyday practice, it might boost the effectiveness of fertilizers everywhere—restoring to the soil that part of their power now lost by bacterial action.

Neem Leaves

The cake is not the only source of fertilizer. In some areas of India's Karnataka State, people grow the tree mainly for its green leaves and twigs, which they "puddle" into flooded rice fields before the rice seedlings are transplanted.

Neem leaves have been used as mulch in tobacco fields in the Jaffna district of Sri Lanka. 6 In The Gambia, tomato plants matured several weeks earlier and had more numerous and longer branches when mulched with neem leaves. 7

As noted previously, neem is a member of the mahogany family, and the properties of its wood resemble mahogany. It is relatively heavy, with a specific gravity varying from 0.56 to 0.85 (average, 0.68). When freshly cut, it has a strong smell. Although easily sawn, worked, polished, and glued, it must be dried carefully because it often splits and warps. It also splits easily when nailed, so that holes must be prebored. Nevertheless, it is a good construction timber and is widely used in carts, tool handles, and agricultural implements. In South India it is a common furniture wood.

The heartwood is red when first exposed, but in sunlight it fades to reddish brown. It is aromatic, beautifully mottled, narrowly interlocked, and medium to coarse in texture. It is subject to only slight shrinkage and can be readily worked by hand or machine. Although it lends itself to carving, it does not take a high polish.

The timber is durable even in exposed situations. It is seldom attacked by termites, is resistant to woodworms, and it makes useful fence posts and poles for house construction. Pole wood is especially important in developing countries; the tree's ability to resprout after cutting and to regrow its canopy after pollarding makes neem highly suited to pole production.

Neem produces several useful fuels. As mentioned above, its oil is burned in lamps throughout India. In addition, its wood has long been used for firewood. Moreover, the husk from the seeds—containing no oil and representing the bulk of the wastage in pesticide manufacture—is mainly employed as fuel.

Because of the tree's good growth and valuable firewood, it has become the most important plantation species in northern Nigeria. It is also grown for fuel around large towns. Charcoal made from this neem wood is of excellent quality, with a calorific value only slightly below that of coal from Nigeria's Enugu mines.

• OTHER PRODUCTS

Several products in addition to those previously discussed have been generated from neem. Among them are the following examples.

• Resin An exudate can be "tapped" from the trunk by wounding the bark. This high-protein material is not a substitute for polysaccharide gums, such as gum arabic. It may, however, have a potential as a food additive, and it is widely used in South Asia as "neem glue." 8
• Bark Neem bark contains 14 percent tannins, an amount similar to that in conventional tannin-yielding trees (such as Acacia decurrens). Moreover, it yields a strong, coarse fiber commonly woven into ropes in the villages of India.
• Honey In parts of Asia neem honey commands premium prices, and people promote apiculture by planting neem trees.
• Food There are odd reports of people eating neem. Leaf teas may be harmful, especially if drunk in quantity over a long period, but it is said that Mahatma Gandhi, who had a hearty respect for the nutritive value of greens, commonly prepared a neem-leaf chutney and ate it with gusto—despite its incredibly bitter taste. Recently, the discovery of a rare neem tree with "sweet" leaves has been reported. 9
• Fruit Pulp Pericarp represents about half the weight of neem fruits, and when they are processed to obtain the seeds, large quantities of pulp are also produced. This neem-fruit pulp is a promising substrate for generating methane gas, and it may also serve as a carbohydrate-rich base for other industrial fermentations. 10

The actual fatty-acid contents measured recently were 41 percent oleic, 20 percent stearic, 20 percent linolenic, 18 percent palmitic, and I percent linolenic. (Information from Neem Project, Justus-Liebig University, Germany.)

This combination process has been developed at the Regional Research Laboratory in Hyderabad, India.

Some are being exported. Neem soaps, toothpastes, oil, and leaves are widely available in Canada and Britain, for example.

Radwanski and Wickens, 1981.

This feature has been measured especially when added to the water in rice fields.

H.F. Macmillan. 1962. Tropical Planting and Gardening. Macmillan, London.

Redknap, 1981.

Anderson and Hendrie, 1971; Anderson et al.. 1972.

Patrao, 1985.

Mitra. 1963.

• Cite this Page National Research Council (US) Panel on Neem. Neem: A Tree For Solving Global Problems. Washington (DC): National Academies Press (US); 1992. 8, Industrial Products.
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