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Vol. 12, Issue 5 (2023)

Business analysis of a flaxseed oil (Medicinal oil) extraction enterprise

Author(s):
Dr. Sangita Warade and Dr. Sulbha Sarap
Abstract:
Flaxseeds contents Omega-3 and its oil is used as edible oil and in manufacturing of paints and varnishes, oilcloth, waterproof fabrics and linoleum. But, the Flaxseeds’ Oil consumption is declined and consequently the area under Flaxseeds in also declining over last two decades. But, recently, due to awareness about the nutritive value of Flaxseeds, the processed products of the Flaxseeds are gaining importance.
To promote the area under Flaxseeds consumption and production, recently, the oil extraction enterprise in Wardha district is started and it is motivating farmers to increase production of Flaxseeds. The costs and returns data of the enterprise is collected for year 22-23. To find the profit and break-even point of the enterprise, the present research work is done.
From the results, it is found that the Flaxseed Processing Unit is Successful. If it is run on commercial basis, it can give more profitable results. The Fixed cost and variable cost of the Unit was Rs. 1,52,778 and 46,92,423 respectively. The net return from the unit was Rs. 22,90,300 per annum. The minimum break-even quantity required to run the unit is 29372 kg. The return per rupee invested in Rs.1.47. The value addition in Flaxseeds was 28.56 percent. The major constraints to run the unit is availability of marketing platform.
The results showed that the replication of the Flaxseed processing model will boost the farmers socio-economic status and subsequently rural economy.
Pages: 4766-4771  |  89 Views  52 Downloads


The Pharma Innovation Journal
How to cite this article:
Dr. Sangita Warade, Dr. Sulbha Sarap. Business analysis of a flaxseed oil (Medicinal oil) extraction enterprise. Pharma Innovation 2023;12(5):4766-4771.

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