Ayushmanbhav Cold Press Oil is located in Mudhol, Bagalkote, Karnataka. The enterprise was started by Mr. Santosh Hosamani (36) for the processing of oil seed products and edible oils. At the time of starting the enterprise, he faced the challenge of entering a market segment that was dominated by established bigger brands. He observed that due to the familiarity with these brands, customers were ready to pay a higher amount because of the familiarity and the trust developed over the period between the brands and their target customers.

Despite the challenge, he kept faith in his product and started his food processing unit in October 2020 with 2 wooden cold press oil machines. Initially, the growth of the enterprise was slow and the revenue generated was less. With time, things took a turn for the better, and the positive word-of-mouth about his products spread in the market. This resulted in his stock getting sold out quickly. While this phenomenon was a sign of growth, it was also the phase where he realized that in order to sustain the increasing market demand and expand his business, he would need to increase the production capacity of the unit. In order to do so, he would need to buy additional machinery but he did not have sufficient funds to purchase the machinery.

He came to know about the PM Formalisation of Micro food processing Enterprises (PMFME) Scheme and the various benefits provided under the Scheme for the establishment and upgradation of micro food processing enterprises. With the support of the District-level and State-level administration of Karnataka, he applied for a bank loan under the PMFME Scheme and received a loan of Rs. 5,92,000 in June 2022. This amount enabled him to purchase 2 steel cold press oil machines.

With the help of this machinery, he expects to double the production capacity of his unit from 50 liters per day to 100 litres per day. He hopes that the increase in the production capacity of his unit will result in a profit generation of Rs. 2000 per day. Santosh is supplying products to both retail outlets as well as via wholesale to distributors within Bagalkote and plans to tie up with retail chains for better market access and larger profit margins. The financial turnover of Ayushmanbhav Cold Press Oil for FY 2021-22 was Rs. 40,50,000.

(Content shared by Karnataka State Agricultural Produce Processing & Export Corporation Limited)