Project Report on Re Refining Of Used Engine Oil

Re-refining of used oils is now accepted and recognized as a legitimate source of supplementing petroleum oils. Prior to the escalation of oil prices, petroleum lubricants and other industrial oils were very cheap and their conservation and saving was not economically attractive. Users did not care to recovery and preserve used oils, which were allowed to be lost or were disposed of by easiest possible means. Rise in Oil prices has compelled the users firstly to economise the use of oils and secondly to recover, grade and store the used oils. Attractive prices and ready acceptability have given a boost to this industry. The current production of re-refined oils in the country is around 30,000 tonnes per year. This is hardly five per cent of the oil consumed, therest 95 percent is  lost. In most of  the applications, lubricants only degrade and are not destroyed. Around 10 lakh tonnes/year of oils are therefore lost in the environment, and pollute ground and water. This therefore, requires and urgent look into the design of machines, and machine lubrication systems. The design criterion is required to be changed from used lubricant drain out to preservation and collection. 

Cost Estimation

Plant Capacity  1 MT./Day 

Land and Building (Area 2400 sq.mt.)  Rs. 24 Lacs

Plant & Machinery  Rs. 7 Lacs         

W.C. for 2 Months  Rs. 23 Lacs           

Total Capital Investment  Rs. 55 Lacs              

Rate of Return  45%   

Break Even Point 53% 

Note: ITI can modify the Capacity and Project Cost based on your requirement.

Contents of the Project Reports

Introduction

Uses and Applications

Properties

Market Position

Present Manufacturers 

Detailed Process of Manufacture 

Formulations

B.I.S. Specifications

Process Flow Sheet Diagram, Plant Layout,

Cost Economics with Profitability Analysis 

Capacity 

Land & Building Requirements with Rates

List & Details of Plant and Machinery with their Costs

Raw Materials Details/List and Costs

Power & Water Requirements

Labour/Staff Requirements

Utilities and Overheads

Total Capital Investment

Turnover

Cost of Production

Break Even Point

Profitability

Land Man Ratio

Suppliers of Plant & Machineries and Raw Materials

Cash Flow Statement

Repayment Schedule

Interest Chart

Depreciation Chart

Projected Balance Sheet for 5 Years etc.