How to Start Groundnut Oil Production – Business Plan
Groundnut oil production in India is financially a profitable venture with huge export potential. In addition, you can initiate the groundnut oil processing operation as small and medium scale basis according to the desired output and project cost. Initiating a groundnut oil production business requires feasibility study preparation, procurement and installation of machines in the appropriate accommodation, recruitment of personnel and project commercial take-off. One metric ton of groundnut seed produces an average of 420 LTR of groundnut oil, 420Kg of groundnut cake, and 40Kg of groundnut sludge.
Groundnut Oil Production Market Potential
Groundnut Oil Production License & Registration
In establishing a groundnut oil production unit, you will need to obtain several different license and registration from different Government authority.
1. Company Registration with ROC
2. Trade License
3 SSI Registration
4. Factory License
5. Food Operator License from fssai
6. BIS Certification
7.‘No Objection’ from Pollution Control Board
8. AGMARK Certification
The Food Standards and Safety Rules, 2011, and rules made under IS 544: 1968 permit additions of antioxidants in groundnut oil for a higher shelf life of the oil. However, under the scheme of labeling of environment-friendly products, the presence of antioxidants within a prescribed limit is a requirement as per notification of the Ministry of Environment and Forests. These are the common license and certification requirement. Check with your local DIC authority about any other required formalities.
Finance For Groundnut Oil Production Unit:
Alike any manufacturing industry groundnut oil production business also involves two types of cost factors. One is fixed capital and another one is working capital. A refinance scheme facility is available with NABARD. For fixed capital, you will need to apply term loan or mortgage loan. For working capital requirement, you can go for cash credit or the overdraft facility with your nearby bank or any financial institution.
Groundnut Oil Production Unit Setup & Machinery
Selecting a right location for factory operation is an important aspect. Major required utilities are water and electricity. Easy availability of transport facility and labour is important.
Create a floor plan indicating specific space for raw material storage, finished products storage, production unit area, administrative work space, store room for oil cakes and space for miscellaneous usage. Generally, you will need to have 0.50 acre of nonagricultural land for establishing an improved groundnut oil expelling unit.
Here, you can instal plant with a processing capacity of 240 MT /annum. Additionally, the land must come with proper elevation.
Machinery required as follows:1.Pre-cleaner for cleaning the oil seeds
2.Cans and trays for handling oil seeds
3.Batch type solar dryer
4.Tapering screw types mechanical oil expeller
6.Steel drums for storing edible oil and sedimentation of impurities
8.Semiautomatic bottle filling machine
9.Molded polycarbonate bottle capping cum sealing machine
If you want to go for pouch packing, you will need to have automatic pouch filling and sealing machine.
Raw Material For Groundnut Oil Production:
The principal raw material required for the production of groundnut oil is groundnut seed. And you can procure this locally. The seed gives 44.5-50% oil, 50-55% meal. However, other required raw materials are caustic soda, bleaching earth, and packaging consumables.
Groundnut Oil Production Process & Technology:
Basically, you can divide the edible oil technology into two groups. These are mechanical pressing and solvent extraction. For oilseeds with high oil content such as groundnut, you will need to apply first mechanical pressing. Here, you can extract over 85% of the oil.
However, you can extract the remaining oil in the expeller cake with a solvent. As per mechanical pressing technology, you can divide the groundnut oil production process into three stages. These are seed preparation, pressing and crude oil refining.
Storage → Cleaning → Dehulling → Grinding or rolling → Heating → Pressing oil cakes → Refining impurities → Purified Edible Oil