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How to Start Groundnut Oil Production Business in India

Groundnut Oil Production

Groundnut oil Business in India- Groundnut oil is a popular edible oil all over the world. The oil has good nutritional value, And it doesn’t create any cholesterol problems. Hence, it is a popular cooking medium. Aside from cooking, the item is an extremely basic fixing in the pastry kitchen and candy parlour industry.

The oil is utilized as a substitute for olive oil and other palatable oils, cleansers, serving of mixed greens and cooking oil, mayonnaise and margarine. Aside from the local market, groundnut oil has colossal fare potential moreover.

So if you are interested in starting a groundnut oil mill business plan, A detailed business plan for a small-scale groundnut oil processing plant is available here.

Market Potential of Groundnut Oil

Groundnuts are a well-known food source all throughout the world. Groundnut oil is utilized for preparing food and as a shortening or as a base for sweet shops and they can be utilized to make a nutty spread. Groundnut oil positions at the top among edible oils traded from India. It is an excellent oil and its expense is additionally high.

Most other edible oils are estimated lower than groundnut oil. Groundnut oil is accessible in the market in refined and sifted structures. In spite of the fact that sifted oils are healthfully predominant in quality,  and also the demand for groundnut oil depends on population and income. As a product aimed at a certain market sector, groundnut oil will be more dependent on revenue.

Investment for the Business

The initial cost for a small-scale groundnut oil processing firm is relatively modest. If you have enough cash to start the business on your own, that is good; otherwise, you will need to raise financing from other capital businesses or banks. Depending on your needs, the bank offers a variety of tailored loans. For example, if you simply need funds to purchase machinery, a bank will fund you based on your precise requirements.

Business Registration & License

Business registration is required when launching this sort of business. You can set up an LLP, Pvt. Ltd, or Ltd firm depending on your management and investing style.

You can apply for MSME Udyog Aadhaar Registration, Trade License, and Business PAN Card only after you have registered. For the transaction, open a current bank account.

Apply for FSSAI and AGMARK registration. Finally, submit an application for BIS registration.

Location for the Business

Choosing the correct area for production line activity is a significant angle. Major required utilities are water and power. The ease of access to transportation, offices, and jobs is crucial. Make a story plan demonstrating explicit space for crude material stockpiling, completed items stockpiling, creation unit zone, managerial work space, store space for oil cakes and space for incidental use.

Raw Material for Groundnut oil

The main necessary raw material is shelled groundnut. You will also need to verify that this item is always available. Also, you will need to procure caustic soda and bleaching earth in a specific quantity.

Another cost-concentrated raw material are bundling consumables. For the most part, the groundnut oil comes in two diverse bundlings. Either in the poly pocket or in the plastic containers. likewise, you should give diverse amounts of bundling.

Machinery for the Groundnut oil Business

Purchasing the proper machinery is critical in this industry. There are several oil milling machines supplying companies in India and even on the worldwide market. Compare the pricing and customer comments before placing your final order. Some of the fundamental machines required are as follows:

Seed cleaning unit

Dust Blower


Hammer Mill

Screw conveyor

Bucket elevator

Roller crusher

Screw press

Filter press

Holding tank




Vacuum pump



Water treatment Set


Groundnut Oil Production Process

For oilseeds with a high oil content, such as peanuts, you must first use mechanical pressing to extract more than 85 percent of the oil. You may also use a solvent to remove the leftover oil from the expeller cake.

Solvent extraction, on the other hand, is more suited for large-scale processing than for small-scale edible oil plants. As a result, mechanical pressing technique is superior in small and medium-scale operations.

The groundnut oil manufacturing process is divided into three parts. Seed preparation, pressing, and crude oil refining are examples of these.

The seed must be thoroughly cleaned using a rotary or table sieve to remove sand, stem, plant debris, and any other foreign materials.

The seeds are now clean and ready for effective oil recovery by pressing.

The phases entail shattering the seeds to reduce their size and then conditioning the seeds by regulating their moisture content and temperature.

The prepared seed must next be transported to the screw pressing machine. It is pressed here by the action of the worm and the outer shell. The crude oil must then be clarified in a settling tank.

After filtering via the filter press, the crude groundnut oil must be sent to the refinery.

It goes through three phases in the refinery: neutralisation, bleaching, and deodorization.

The facility requires a containment tank to collect and treat waste created during the operation.

Package Your Groundnut Oil

There are lot of groundnut oil brands in the Indian market. How do you package your own product will determine it will sell or not. You need to package your groundnut oil product in such a way that for the first time any eye falling on it would like to know what is in the package.

Remember to add your company’s logo, name, and contact information on each pack. This will enable anyone to order a large amount of information to know how to contact your company.

Marketing Your Groundnut oil

You have an excellent marketing plan to urge consumers, especially retailers and wholesalers, to safeguard their groundnut oil against competing brands.

First and foremost, you can make a promotional offer to them.

Second, you may take part in culinary or cooking demonstrations and offer your peanut oil samples.

Finally, you set up an internet blog where you post articles from an e-commerce business on groundnut oil and its health advantages and allow visitors to place purchases.

You may also use prominent social networking sites with millions of visitors to generate sales.

How to Start Groundnut Oil Production Business in Small Scale

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