Group 1 (Bio)

EPF 4601
Plantation Crops Processing

Margarine Production from
Palm Oil
Prepared By:
Sangitha a/p Narayanan 180338
Nurul Ain Bt. Mohd Said 180190
Lisnurjannah Bt. Mujianto 180230
Lecturer:
Assoc. Prof., Dr. Rosnah Shamsudin
OVERVIEW OF OIL PALM
 Oil palm originated from Africa and was introduced to Malaya
by British.
 Palm oil produces various subsidiary products as fibre, peat

cake, biodiesel, fertilizer.
 Crude palm oil (CPO) and palm kernel oil (PKO) are main
product of palm oil industry.
 Stearin and olein are oil produced from palm kernel which is
used to produce margarine.
Manufacture
Established on margarine from
15th April 2013 palm oil-based
“Your Satisfaction
is Our
Satisfaction”
Vision- Well known

worldwide.
Mission- Offer best
service
ORGANIZATIONAL STRUCTURE
PRODUCT
OVERVIEW
•Popular for its imitation and substitution of
butter.
•Widely use in spreading, baking and
cooking.
•Made up mainly from vegetable oil (palm
oil) that had undergoes the process of
hydrogenation.
•Hydrogenation produce solidified
margarine in room temperature.
•High demand from the food industries.
•High demand during festive season.
PRODUCT DETAILS
FUTURE
POTENTIALS
Vegetarian
consumers
Food
industries
PROCESS BLOCK DIAGRAM
Fat blend, = 2400kg
Minor fat phase Fat = 60%
Aqueous phase
ingredients = 120kg Liquid oil : 75%
= 480 kg
Hydrogenated oil = 25%
Gelatin = 20%
Emulsification
Emulsions = 3000 kg
Crystallization
Margarine = 3000 kg
Packaging
Margarine = 3000 kg
PROCESS DESCRIPTIONS
Fat blend
Fat phase
Fat soluble
Preparation ingredients
Aqueous Water soluble

phase ingredients
EMULSIFICATION
Aqueous
Fat soluble
Fat blends phase
ingredients
ingredients
CRYSTALLIZATION
Scraped heat Pin rotator
exchanger machine
PACKAGING
PROCESSING LAYOUT
Oil and fat storage tank
Emulsion mixing tank Aqueous phase mixing tank
PROCESSING LAYOUT Scraped surface heat exchanger
Pin rotor machine
Emulsification mixing tank
Packaging machine
RESEARCH
ASSESSMENT
Lam Soon Edible Oils
Sdn. Bhd. Delima Oil Products Sdn.
• Margarine from palm oil Bhd.
& sunflower oil. • Margarine from palm oil.
• Cholesterol free. • Enriched with 9
• Enriched with 9 vitamins.
vitamins. • Stick margarine
• Tub margarine • RM 5.50/kg
• RM 12.15/kg
Dairy Crest Group

Unilever (Malaysia)
• Margarine from
Holdings Sdn. Bhd.
vegetable oil &
• Margarine from palm oil.
sunflower oil.
• 0.1g trans fat.
• No hydrogenated oils.
• Enriched with 9
• Enriched with vitamin A
vitamins.
& D.
• Tub margarine
• Tub margarine
• RM 12.45/kg
• RM 14.49/kg
SWOT ANALYSIS
• Produces • Product contains
margarine with hydrogenated
butter-like oiils.
texture that has
low water
content.
Strength Weakness
Opportunity Threats
• Product suitable • Small scale of

for heart patient market since just
and lactose penetrating the
intolerant people. market
BUSINESS COST
Administration expenses Operating expenses
No Item Fix Assets Yearly N Item Fixed Yearly
Expenses Expenses
o Asset Expenses
(RM) (RM)
1 Annual Salary - 193,644 1. Machineries & 492,000 -

2 EPF - 31,680 equipment
3 SOCSO - 3,564
installation
4 Transportation 50,000 -
5 Furniture and 11,685 - 1. Raw Material - 138,972
Office needs
Total 61,685 228,888 1. Packaging - 365,760
material
1. Utilities - 15,400
Other expenses Total 492,000 520,132
No Item Expenses
(RM)
1 Business registration 60.00
2 Business license 20.00
3 Utilities deposit 1,550
4 Land and building 5,000,000
Total 5,001,630
CASH FLOW
TOTAL 1st Year 2nd Year 3rd Year 4th Year 5th Year
Beginning cash balance 17,132,540 0 -848,335 2,503,525 5,959,065 9,518,285
Capital receipt
Loan from bank 1,500,000 1,500,000 - - - -
Individual shares 500,000 500,000 - - - -
Sales of margarine 21,081,600 3,456,000 4,250,880 4,354,560 4,458,240 4,561,920
Total cash inflow : 40,214,140 5,456,000 3,402,545 6,858,085 10,417,305 14,080,205
Cash payments
Administrative Expenses :
Annual Salary 968,200 193,644 193,644 193,644 193,644 193,644
EPF 158,400 31,680 31,680 31,680 31,680 31,680
SOCSO 17,820 3,564 3,564 3,564 3,564 3,564
Transportation 50,000 50,000 - - - -
Furniture and office needs 11,685 11,685 - - - -
Total administrative expenses 1,206,125 290,573 228,888 228,888 228,888 228,888
Operational Expenses :
Machineries and equipment installation 492,200 492,200 - - - -
Raw Material 694,860 138,972 138,972 138,972 138,972 138,972
Packaging material 1,828,800 365,760 365,760 365,760 365,760 365,760
Utilities 77,000 15,400 15,400 15,400 15,400 15,400
Total operational expenses 3,092,860 1,012,132 520,132 520,132 520,132 520,132
Other expenditures :
Business registration 60 60 - - - -
Business license 20 20 - - - -
Utilities deposit 1,550 1,550 - - - -
Land purchase 5, 000,000 5, 000, 000 - - - -
Loan payment (10%) 600,000 - 150,000 150,000 150,000 150,000
Total other expenditures 5,601,630 5,001,630 150,000 150,000 150,000 150,000
Total cash outflow: 9,900,615 6,304,335 899,020 899,020 899,020 899,020

Ending cash available 31,313,725 -848,335 2,503,525 5,959,065 9,518,285 13,181,185
CONCLUSION
 This business model is viable since it brings
high profit after the second year itself.
 Product fulfilled customers requirements and

demand.
 Product focused on healthy lifestyle which is

why customers might choose our product.
 Can be assured that product proposed gives

promising return of investment.
REFERENCES
Statista 2017, Retrieved from
https://www.statista.com/statistics/716609/production-of-
margarine-malaysia/
SPX Flow Technology, 2012, Crystallization Technology, Issued

07/2012 GB, Retrieved from
http://www.spxflow.com/en/assets/pdf/GS_crystallization_technol
ogy_07_12_GB_web.pdf
SPX Flow Technology, 2012, Margarine Production Technology

and Process, Issued 07/2012GB, Retrieved from
http://www.spxflow.com/en/assets/pdf/GS_margarine_production
_07_12_GB_web.pdf

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EPF 4601

Plantation Crops Processing

 Palm oil produces various subsidiary products as fibre, peat

Vision- Well known

Aqueous Water soluble

Emulsion mixing tank Aqueous phase mixing tank

PROCESSING LAYOUT Scraped surface heat exchanger

Pin rotor machine

Emulsification mixing tank

Dairy Crest Group

• Product suitable • Small scale of

1 Annual Salary - 193,644 1. Machineries & 492,000 -

Total cash outflow: 9,900,615 6,304,335 899,020 899,020 899,020 899,020

 Product fulfilled customers requirements and

 Product focused on healthy lifestyle which is

 Can be assured that product proposed gives

SPX Flow Technology, 2012, Crystallization Technology, Issued

SPX Flow Technology, 2012, Margarine Production Technology

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