Chapter 1

Introduction

1.1 Industry Profile

Throughout the years, nation's has accomplished critical quantitative increment in cotton
generation. Till 1970s, nation used to import gigantic amounts of cotton in the scope of 8.00
to 9.00lakh per annum. In any case, after government propelled extraordinary plans like
concentrated cotton creation program through progressive five-year designs, that cotton
generation got the fundamental impulse through increment in territory and appearing of cross
breed assortments around mid 70s. Since the nation become independent in cotton creation
excepting not many years in the late 90s and mid 20s when huge amounts of cotton must be
imported because of lower crop generation and expanding cotton prerequisites of local
material industry.

Since dispatch of '' Technology Mission on cotton" by legislature of India in February 2000
noteworthy accomplishments have been made in expanding yield and creation through
improvement of high yielding assortments, proper exchange of innovation, better homestead
the board rehearses, expanded zone under development of Bt cotton cross breeds and so on.
Every one of these advancements has come about into a turnaround in cotton creation in the
nation since last6/7 years. The yield d per hectare which was dormant at around 300 kg/ha for
over 10 years, has expanded considerably and arrived at a degree of 554 kg/ha in cotton
season2007-08.

The principal changes that occurring in the domain of cotton development in the nation, are
having the capacity to take the present efficiency level close to the world normal cotton
generation per hectare soon. Aside from meeting the expanded cotton utilization by local
material industry, nation may have adequate surplus cotton to meet the cotton necessities of
bringing in nations.

Progress with regards to area, production and yield in the country over the last ten
years is enumerated as under:

Area in lakh hectare/Production in lakh bales/Yield kgs per hectare

YEARS AREA PRODUCTION YIELD

1997-98 89.04 158.00 302

1998-99 98.87 165.00 302

1999-2000 87.91 156.00 302

2000-01 85.76 140,00 278

2001-02 87.30 158.00 308

2002-03 76.67 136.00 302

2003-04 76.30 179.00 399

2004-05 87.86 243.00 470

2005-06 86.77 241.00 472

2006-07 91.14 280.00 521

2007-08 94.14 307.00 554

2008-09 94.06 290.00 524

2009-10 103.10 295.00 486

2010-11 111.61 312.00 475

2011-2012 111.89 321.00 485

1.2 Company Profile

Name of the Firm : L.N. Oils

Address : L.N. Oils 3rd main road Belur Industrial Area,

Dharwad – 580011

Karnataka

Registered Office : Gangavathi, Marlanahalli,

Dist. Koppal.

Constitution : Partnership Firm

M/s L. N. Oils is an organization firm settled in March 2009 at Industrial Growth Center,
Belur, Dharwad, Karnataka found neighboring Pune-Bangalore Highway with all the
framework offices, for example, Road, Water, and Labour& Transportation and so on.

M/s L. N. Oils has set up a propelled Oil extraction unit, De-linting unit occupied with
handling of oil seeds particularly cotton seed in a logical manner and ensuing dissolvable
extraction with introduced ability to process 200 MTPD of cotton seed. The hardware to
Delint cotton seed was set up with apparatus acquired from carver gear and advancements Pvt
Ltd, an innovator in cotton seed handling. The build up is created in two cuts. The build up
delivered is of the highest caliber. The firm has introduced all the hardware required to
deliver the highest caliber of linters.

The advertisers of M/s L N Oils are in the line of cotton and cotton seed business with built
up customers base. They have satisfactory information about and cotton related items, value,
development and promoting of their items.
Production Department

Production is the functional area responsible for turning inputs into finished goods
through a series of production processes. The Production Manager is responsible for
making sure that raw materials are provided and made into finished goods effectively.
He or she must make sure that work is carried out smoothly, and must supervise
procedures for making work more efficient.

The Structure of working of Production Department at L.N.Oils:

Raw Cotton Seed.
After the item tests are endorsed by the business lab the crude cotton seeds are emptied and
went to the cleaning procedure or it is put away in the product houses, which is the following
degree of handling.

Seed cleaning (100 Metric ton)

Right now are cleaned to evacuate any leaves, twigs, bits of bubbles or sand got in the fields
or in dealing with. Different blends of spinning screens, shaker screens, and pneumatic
hardware are utilized for the cleaning purpose.

Right now is 0.5% of wastage of merchandise stay because of inside harms. After this
procedure it is sent into the Delinting area,

Delinting Section

In the wake of cleaning, seed are passed to the build up room where the short filaments,
known as linters, are expelled, by the delinting machines, utilizing the guideline of the cotton
gin, comprise of a progression of roundabout saws on a level rotating shaft. These saws
venture through a lot of steel ribs. As seed fall on the firmly divided ribs, the saws spin,
removing the short filaments. The linters are expelled from the saws by utilizing brushes or
air and are gathered and squeezed into bundles. A kind of delinting known as grating
Delinting is utilized by a couple of factories. This procedure utilizes a physical scouring
activity to expel the linters.

Delinting 1st cut and 2Nd Cut

Seed might be gone through the delinting machines once, in which case the linters are
delivered known as "millrun." Most factories run the seed through twice and produce "first-
cut" and "second-cut" linters. First cuts comprise of the more drawn out, stronger filaments.
While second cuts are comprised of short filaments or fluff. The extent of first cut and
second-cut linters might be changed inside the points of confinement. As of late, industry
wide creation of the three sorts of linters has been: first-cut 17 percent, second-cut 70 percent,
and factory run 13 percent.

In L.N. Oils first cut is 2.5 %( 2.5 Metric ton) and second Cut is 3.5 %( 3.5Metric ton)

Hulling Section

After the linters are evacuated, seed went to the hullers. The defensive structure which
encompasses the cottonseed part is generally intense. Hulling is cultivated by a machine
utilizing a progression of blades which cut the structures and in this manner release them
from the bit. Seed are then gone through a progression of shakers and separators which
separate structures and bits. Great partition is fundamental for the proficient creation of value
oil and feast. After detachment, structures are prepared to showcasing in packs or in mass.
The parts, or meats, are currently prepared for oil extraction.

Meat

The Cottonseed comprises essentially of internal piece, as a rule called 'meats'. This
substantial segment contains all the oil just as proteins. The meat is encased in an intense
fibered shell called Hull. Over the frame stick out the cotton fibred which get away from the
ginning and left on seed these cotton filaments are called 'Build up'.

Expellers

In the Oil Mill the meats are cooked in a hardening contraption and took care of into a
progression of expellers comprising of substantial tightens working the solid enclosures, The
meats are crushed with pressure as high as 5 to l0 tons for each Sq Inch. At this weight the oil
is crushed out through the cuts in the confine and the meats, squeezed in to oil cakes,
containing around 7 to 8 percent of oil, are released through the cage.

As of late, notwithstanding, "expeller" has come to mean homogeneous squeezing build ups,
while "oil cake" is utilized to portray blended squeezing deposits.

Expeller Crude Oil

The Crude oil got from the expellers is separated through plate and casing sort of channel
presses and afterward it sent to processing plant. In their processing plant the oil is right off
the bat killed with the harsh pop, which responds with free unsaturated fat substance of the
oil and structures of soap.

Soap Stock and Refined Washed Oil

The cleanser is isolated from the oil by methods for axes or by settling and is called cleanser
stock. The treatment with burning soft drink additionally expels the gums, dim shading
matter and colors from the unrefined petroleum. The oil is then washed with the heated water
to liberate it from cleanser and burning pop, the washed oil is dried instantly drier and is sold
as washed cotton seed oil.

Expeller Cake

Expeller cake is where the cotton seed are squeezed and there are 3 substances separated, first
we get raw petroleum, Deoiled cakes and dissolvable blend raw petroleum.

Deoiled Cakes

Cotton Cakes are the solid matter remaining after oil has been pressed from the cottonseeds.

Solvent Crude Oil

Dissolvable unrefined petroleum contains blend of risky synthetic concoctions; henceforth

the dissolvable raw petroleum is again filtered and sent it to the processing plants.
Dissolvable raw petroleum is cleaned with the procedure of Hexane (White oil), and later
sent it to the treatment facilities.
List of Machinery and Equipment

Sr. Description Qty.

No. (No)
1 Cotton seed cleaning machine 1
2 Decortications machine 1
3 Presssection 1
- Press
- Screen &filter
4 Refinery 1
- Neutralizer
- Washer
- Bleacher
- Deodorizer
5 Boiler 1
6 Submersible pump 1
7 Cooling towers 1
8 Laboratory equipment Set
9 Barrel Washing machine

Owner Ship Pattern

L.N. Oils promoted by:

Sl No Name Role
1 K.Suresh Babu Managing Partner
2 K.Nageshwar Rao Partner
3 K.surendra Babu Partner
4 K.Narendra Babu Partner
5 SmtK.Sunita Partner
6 SmtK.Lavanya Partner
7 SmtY.Satyavati Partner
8 SmtN.Padma Partner
9 N.Srinivas Partner
10 N.Mohan Rao Partner
Associated Concerns of L.N. Oils Pvt. Ltd.
Mr. K Suresh Babu, is the Managing Partner of M/s L N Oils, he is a MBA graduate and hails
from the Industrialist family. His relatives are in the cotton related items business throughout
the previous 25 years. He is accomplice of M/s Laxminarayana Industries, Dharwad, which is
occupied with extraction of Oils from cotton seeds and exchanging cotton seeds, cotton seed
oil, cotton seed cake, sun bloom oil, sun blossom seed cake, and so forth, the firm is the
biggest processor of cotton seed in the state of Karnataka.

1) Laxminayaran Industries : Plot No. 136, KIADB, Belur, Industrial area.

Dharwad- 580011
2) Laxmi Agro Industries : Plot No. 135, KIADB, Belur, Industrial Area,

Dharwad-580011

3) Laxmi Srinavas Rice Mill : Navanagar, Marlanahalli

4) Laxmi Srinavas Oil Mill
5) Laxmi Venkatadri Agro Foods :
6) Laxmi Solvents:
Tq: Gangavathi, Dist: Koppal
: Navanagar, Maranahalli
Tq: Gangavathi Dist: Koppal
Sy.No. 193/6 Manchar road,
Raichur, Karanataka.
Plot No. 16/1/C, KIADB Belur, Industrial area
Dharwad- 580011