groundnut oil processing business plan

• Agriculture Farming
• Livestock Farming

Project Reports

• Hydroponics
• Best Fertilizers
• Vertical Farming
• Sheep Farming
• Goat Farming
• Poultry Farming
• Fish Farming
• Pig Farming
• Dairy Farming
• Rabbit Farming
• Success Stories of Farmers
• Boost Fruit Yield
• District Wise Crop Production
• Schemes & Subsidies
• Agriculture Colleges
• Farm Insurance
• Disease Control And Management

Agriculture

Aquaculture

Horticulture

Agri Business

Groundnut Oil Making Process (Peanut), Business Plan

Table of contents, a step by step guide for groundnut oil making process, business plan:.

Today, let us discuss the groundnut oil production process, extraction methods, and business plant including groundnut oil plant (machine) cost in India.

Groundnut oil is also known as peanut oil or Arachis oil, is a mild-tasting vegetable oil expressed from groundnut kernels. Groundnut oil is generally used in cooking, including frying, basting, and the manufacture of margarine and shortenings. Groundnut oil is light yellow transparent edible oil with clear color and lecture, pleasant fragrance and good taste is relatively easy to digest.

Groundnuts or peanuts are a popular source of food throughout the world. And the groundnut oil, however, can be used for cooking, they can be used as a shortening or as a base for confectioneries and they can be used to make peanut butter. Groundnut kernel contains 45 to 55% of oil. The Groundnut oil obtained from the kernel is yellow to greenish-yellow in color. The meal is a very important component of feeds for poultry and cattle. Groundnut oil is an organic material oil that derived from peanuts, noted to have the aroma and taste of its parent legume. Peanuts or Groundnut oils can be extracted in various ways. Always method used depends on the oil.

Groundnut oils are extracted by using a solvent like hexane, while aromatic oils are extracted with different methods including steam distillation and the cold pressing method. In all of these options, the goal of extraction is to produce pure oil free from contaminants and traces of the original plant material.

India is the second-largest producer of peanuts after China. Groundnut or Peanut is the largest oilseed in India in terms of production. It accounted for about 35.99 percent of the oilseeds production of the country during 2007-08. Generally, 2.5 kg of groundnut to produce 1 liter of the groundnut oil. The cost of procurement and processing of the groundnut or peanut is around Rs. 90/kg. Hence, simple math says that Rs. 225/liter is the raw material cost.

Major Groundnut oil-producing states in India

In India groundnut or peanut is grown over an area of 6.9 million hectares with a total production of 5.3 million tonnes. Groundnut cultivation is mainly confined to south Indian states, viz, Gujarat, Andhra Pradesh, Karnataka, Tamil Nadu, and Maharashtra. The other important states grown Groundnut are Madhya Pradesh, Rajasthan, Uttar Pradesh, and Punjab.

The general process of Groundnut oil production

From harvested groundnuts to pure edible peanut oil or groundnut oil production is a complex process. The main procedure is groundnuts preprocessing, prepressing, solvent extraction, crude peanut oil refining.

You may also like Growing Onions from Seed, Planting, Care, Harvesting .

The Groundnuts must be pre-processed before sending to the expelling department, the kernels need to be cleaned, shelled, cracked and cooked by special seed processing machinery. Then the preprepared peanut kernels will be transported to the prepressing workshop in where these raw materials could be first expelled by screw oil press machines. However, the screwing process of pressing is a high residual oil rate. In this time, the chemical method solvent extraction will be a good method to fully extract peanut oils. The solvent extraction method can create the residual oil rate of the groundnut meal below 1%. Therefore, for edible use, the pressed crude groundnut oil needs to be refined by filter presses or oil refining plant.

Groundnuts solvent extraction process

Generally, the Groundnut or peanut solvent extraction is a procedure which involves extracting oil from oil-bearing materials by treating it with a low boiler solvent as opposed to extracting the oils by mechanical pressing methods that are expellers, hydraulic presses, etc. The solvent extraction process recovers almost all the oils and leaves behind 0.5% to 0.7% residual oil in the raw material, such as peanuts solvent extraction plant or ground nuts solvent extraction plant, etc. In the case of mechanical pressing, the residual oil left in the oil cake can be anywhere from 6% to 14%.

Groundnuts are first decorticated to remove the husk. The Groundnut kernels so obtained have oil content over 48%. The kernels are subjected to mechanical extraction process with the help of screw presses. The resultant cake has residual oil content changeable from 8 to 12% depending on the extent of pressing. The pre-pressed cake is subjected to solvent extraction for recovery of the residual oil.

The raw material for Groundnut oil production:

The principal raw material essential for the production of groundnut oil is groundnut seed. And you could procure this locally. The seed gives 44.5 to 50% oil, 50-55% meal. However, other required raw materials for Groundnut oil production are caustic soda, bleaching earth, and packaging consumables.

Equipment used for Groundnut oil extraction process:

List of the equipment used for Groundnut oil extraction process will be given below;

• Self-regulation vibrating sieve
• Magnetic separator
• Cleaning sieve
• Groundnut shelling machine
• Groundnut Kernel Grading Machine
• Peanuts Crushing Machine
• Five-layer Vertical Steam Cooker
• Electrical Cooker
• Peanut Rolling Machine
• Mechanical expeller
• Filter machine

Groundnut oil extraction process:

Groundnut oil processing process, based on mechanical pressing technology, is normally grouped into three stages they are groundnut seeds preparation, groundnut pressing, and rude groundnut oil refining.

The complete Groundnut oil extraction process can ensure the nutrition, flavor, safety, and fragrance of peanut oil. The different stages of Groundnut oil extraction process mainly composed of cleaning, shelling, grading, crushing, rolling, steaming or cooking, pressing, filtering and refining.

The first step in preparing oil seeds for Groundnut oil extraction is to clean them. Clean accurately so that the oil is not contaminated with foreign materials. Therefore, this helps to proceed with the extraction process as efficiently as possible. During the procedure, carefully inspect the seeds to remove stones, sand, dirt and spoilt seeds. Additionally, you can use dry screening method to remove all material that is over or undersized. Sometimes washing is resorted to but it must be avoided as the plant tissue will have to be dried at a later stage.

You may also check Organic Vegetable Farming in India .

The raw materials for Groundnut oil extraction should be fresh, full-grained, undamaged, mildew-free, and free of insects and have not undergone an aging period. The cleaning procedure can remove the immature, damaged and moldy grains. The equipment used for this process will be self-regulation vibrating sieve, magnetic separator, cleaning sieve, etc.

Groundnuts with shells should use Groundnut sheller to remove the shells to increase the oil yield, improve the quality of the oil and cake and smooth the following peanut oil production process. The equipment used for this process will be the Groundnut shelling machine.

Some of the Groundnut oil production plants may add this process to separate the small peanuts and large peanuts for different treatments. The equipment used for this process will be the Groundnut Kernel Grading Machine.

This procedure is to remove the red skin by crushing the Groundnut kernels. Then obtain rid of the red skin by wind separator. At the same time, large size Groundnut kernels are crushed into a smaller size. The moisture of crushed Groundnuts can be better controlled. The equipment used for this process will be the Peanuts Crushing Machine.

Rolling or grinding:

After crushing, Groundnuts are rolled through the instantaneous extrusion force between the two rollers to form the embryo slice, the shape of the peanut is changed, the oil path is shortened, and this is beneficial to the peanut oil extraction. The seed is not generally pressed whole since oil extraction is more efficient if the seed is in smaller particles. Herein lies the relevance of the grinding procedure. Grinding is the process for reducing the particle size. Also, you can use small motor powered hammer mills for the unit operation.

Another alternate process used for the reduction of particle size is rolling the oilseeds to generate flakes for oil extraction. Many large-scale commercial plants find this mainly effective approach. Additionally, with large oilseeds, it can be necessary to grind the seed first, and then put the pieces through the flaking rollers. The equipment used for this process will be Peanut Rolling Machine.

Steaming or Cooking:

This procedure is to adjust the moisture of peanut embryo slice by changing the temperature to develop the oil extraction rate and ensure the final peanut oil has a strong aroma. The equipment used for this process will be Five-layer Vertical Steam Cooker, Electrical Cooker.

It is not too late to check Basmati Rice Farming .

The steamed or cooked peanut embryo slices are then pressed by Groundnut oil press machine for oil extraction. The screw peanut oil or Groundnut oil machine can ensure the original cell structure of the peanut is destroyed under mechanical force to obtain a pressed crude oil.

During processing, press the conditioned oil seeds or oil-bearing material using a lever press, hydraulic press or a mechanical expeller to remove the oil.

Peanut oil pressing methods

Divided by pressing temperature, there are two types of peanut oil pressing methods they are hot pressing technology and cold pressing technology.

Hot pressing method is the traditional process of peanut oil. Peanut oil is steamed fried and pressed, generally at a temperature above 120 ℃ with a high rate of oil output. But because of the high production temperature, the peanut protein is generally severely denatured and the lose a great number of nutrients.

Cold pressing method refers to the oil production technology which is conducted temperature under 60℃. Before pressing method, normally uses the process of removing the red skin, which is beneficial to the reserve of nutrients and the comprehensive utilization of peanut protein in peanut oil.

Generally, crude peanut oil can include some organic impurities that can be easily removed by edible oil filter machine or other type’s oil filter machine.

The crude peanut oil or Groundnut oil that is filtered by the oil filter machine is pure and clean. But it still contains several oil-soluble and in oil-soluble impurities. Therefore, it is essential to equip the peanut oil production plant with professional edible oil refinery equipment to get them off and obtain the refined high-quality peanut oil.

Cost of Groundnut oil extraction machine:

Generally, the cost of Groundnut oil extraction machine will be approximately Rs 1.8 Lakh/Piece.

You may be interested in Growing Arugula Plants .

16 COMMENTS

Hello I am Ankit Patel a Young entrepreneur looking for peanut oil business, and I need help from your side about business from the first step how to start the business , what is process n all. Thank you

very good activity

Hi I a farmer from Maharashtra.I need to start a small groundnut oil factory in my farm.can any one pls suggest me from whr I can start..I saw lot of small machines which can give 4/6kg oil in an hr..as i am farmer i can grow groundnut in farm.. I need help from your side about business from the first step how to start the business , what is process n all. Thanks you.

hi, i am in groudnut oil extraction business (cold pressed, chemical free) on a small scale. I need guidance from you to procure moister free, good oil content seeds. i want to expand my business. i am from Mumbai and do not get good variety of seeds from mandi i.e. wholwsellers in Mumbai and also rate if very high. thanks

Hi, I am chetan patel from west Africa but I am indian from Junagadh Gujarat. If you want to start oil mill at Africa then I am with you because I want to start oil mill here. Actually I have lots of experience of Oil mill and cotton ginning. Here very good groundnut with per kg 30rs. and price will be not changed whole year because here is not satta bazar. My whatsapp is continue at Africa so you can contact me. With regards

What is the name of the variety of peanut.

I am a farmer and supplier of big lot ground nut. I can provide big lot of high quality ground nuts which contains good amount of oil content. Kindly clarify which grade of ground nut you use for oil making and Minimum quantity require.

I want know about groundnut.

Hi i have a oil manufacturing unit.. and i am in search of peanut farmer for direct supply of peanut in which both side will be benifitted…..

I was given an assignment, I really need it. The question goes as thus, what are the methods of grading in oil, it’s advantages and disadvantages?

Hi, My name is Mr. Subhash Wadkar, I am professional for processing of edible oils working in Africa for many years. Now I want to start my own crushing unit for groundnut, but I really have doubts about the loss and forain material % for calculating its recovery after the process. Can any one guide me on retrieval that what is the standard range of F M content for groundnut process.

pls give me idea where we get ground nuts oil making machine

Hello, I am Mr Collins from Benin city ,Edo state ,Nigeria. I have just pick interest in production of grand nut oil in Benin . I have already made the provision for the supply of a machine for this business. So please I want to be properly guided on the business. And again I want the step by step process of this production and the marketing. Thanks. Collins

Thanks for this forum, it’s of a great opportunity and pleasure to read different thoughts and questions from across the globe. I am from Northern Uganda and our region is the leading in groundnuts production. I hope to submit my questions as I encounter challenges in this industry.

Am Blessing from Nigeria am looking in starting up a batch production of refined groundnut oil in my country but I need guidance on how to go about it and the variety of groundnut to use, and also how to remove odor in cold pressed groundnut oil

Your post is a valuable resource for anyone looking to expand their knowledge on the topic. It’s thorough and well-explained.

LEAVE A REPLY Cancel reply

Save my name and email in this browser for the next time I comment.

Ultimate Guide to Natural Vegetable Farming

Natural farming for sustainable livestock management, dairy farm technology in india: the future of dairy husbandry, comprehensive guide to organic farming in villages, modern sheep farming technology: the future of sheep husbandry, goat farming technology: the future of goat husbandry, how to build a low-budget goat shed: cheap ideas and..., goat farming training programs in india: a beginner’s guide, types of pesticides used in agriculture: a beginner’s guide, economical aquaculture: a guide to low-budget fish farming, 15 common planting errors that can doom your fruit trees, how to make houseplants bushy: effective tips and ideas, innovative strategies for boosting coconut pollination and yield, pollination strategies for maximum pumpkin yield, the complete guide to chicken fattening: strategies for maximum growth, natural solutions for tulip problems: 100% effective remedies for leaf..., revolutionizing citrus preservation: towards a healthier, greener future, natural solutions for peony leaf and flower problems: 100% effective..., maximizing profits with avocado contract farming in india: a comprehensive..., natural solutions for hydrangea problems: 100% effective remedies for leaf..., borewell drilling cost, pump price, and pipe cost, polyhouse subsidy, cost, profit, project report, tractor subsidy, bank loan, eligibility, schemes, process, malabar neem project report details guide, cold storage project report, cost and subsidy, mushroom farming project report, cost and profit analysis.

How to Start a Groundnut Oil Processing Business

Home » Business ideas » Agriculture Industry » Agro Processing & Allied Industry

Do you want to start a groundnut oil processing business? If YES, here is a complete guide to starting a groundnut oil processing business with NO money and no experience plus a sample groundnut oil processing business plan  template.

No entrepreneur would want to go into a business if they know the chances of making profit from the business is slim, as such, the need to start a business whose products or services is generally accepted by all and sundry, and one of such businesses is the production of groundnut oil. It is fact that all homes or restaurants cum hotel related businesses make use of groundnut oil on a daily basis.

A groundnut oil production company is not one of those businesses that can be started without suitable study of the industry. It is important that you conduct detailed research in order to find out what it will take for you to setup a groundnut oil production company and how to leverage on the existing market to sell your products and also how to create new market channels.

A Groundnut oil Production Company can be considered to be capital intensive, but it is indeed a money spinning business if it is well located and if you are able to create a robust distribution network. If you are tinkering with going into groundnut oil production business, part of what you need to do is read this article to get some information on how to go about launching the business.

You can start your groundnut oil production business in a small town in the United States and if you put the proper structures in place, it won’t be too long before your brand becomes a nationally recognized brand and your products get sold all across major cities in the United States of America and other countries of the world.

18 Steps to Starting a Groundnut Oil Processing Business

1. understand the industry.

Groundnut oil production business falls under the Cooking Oil Production industry and players in this industry basically manufacture cooking oil from a wide variety of edible oil plants. Industry products include soybean oil, rapeseed oil, palm oil, peanut (groundnut) oil, cottonseed oil and other edible oils.

The Cooking Oil Production industry has shown impressive growth over the years. Groundnut oil is a consumer staple and does not experience wild fluctuations in demand, even during recessions. The main reason the industry’s revenue has increased over the five years is due to a major spike in the price of peanuts (groundnuts).

Going forward, manufacturers readjusted prices to reflect lower peanut prices, resulting in revenue declines. Please note that the demand for groundnut oil is expected to remain robust in the next five years as it maintains its position as an important household staple. However, because of fluctuating peanut prices, industry revenue will likely remain volatile.

The Cooking Oil industry of which groundnut oil production line of business is a subset of is a thriving sector of the economy of the united states of America and it generates well over billion annually from more than 456 registered and licensed manufacturing companies scattered all around the United States of America.

The industry is responsible for the employment of over 16,278 people. Experts project the industry to grow at a 2.8 percent annual rate. No cooking oil brand can boast of having a lion share of the available market in the United States of America.

The Cooking Oil Production industry in the United States expanded rapidly in recent years due to increased industry capacity and high levels of domestic demand. With the country’s change in economic focus from export to domestic demand and increased living standards, cooking oil consumption in the United States is expected to maintain a rigid growth trend, with the industry revenue rising to $27.8 billion in 2017, up 3.8 percent for the year.

Over the past five years, revenue has been growing at an annualized rate of 2.8 percent. The small-package cooking oil segment accounted for 15.0 percent of total industry revenue in 2008, and its share has been increasing rapidly in recent years.

Some of the factors that encourage aspiring entrepreneurs to venture into starting a groundnut oil production company is the fact that the market for groundnut oil is growing rapidly in the United States and it is not seasonal. That makes it easier for loads of entrepreneur who are interested in the business to come into the industry at any time they desire; the entry barriers are quite affordable and any serious minded entrepreneur can comfortably raise the startup capital even if it means collecting loans from the bank.

The Cooking Oil Production industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business as long as you are able to obtain the required license and permits; you can choose to start on a small scale producing limited quantities of groundnut oil or you can choose to start on a large scale with distribution network and several outlets in key cities all around the United States of America.

2. Conduct Market Research and Feasibility Studies

• Demographics and Psychographics

The demographic and psychographic composition of those who make use of groundnut oil cut across households and all players in the food preparation line of business such as hotels, restaurants, bakers, caterers, and snack manufacturers et al. So, it will be safe to say that the demographic composition for a groundnut oil production company is all encompassing.

3. Decide Which Niche to Concentrate On

Groundnut oil production is a niche area in the Cooking Oil Production industry, but we are not ruling out the fact that it is the practice for groundnut oil production companies to engage in the production of other cooking oil for the purpose of maximizing profits.

This is why you find groundnut oil production companies also engage in producing some or all of the under listed;

• Soybean oil production
• Rapeseed oil production
• Cottonseed oil production
• Olive oil production
• Castor oil production
• Sesame oil production
• Sunflower seed oil production
• Corn oil production
• Other edible oil production

The Level of Competition in the Industry

There is hardly any industry or line of business anywhere in the world where there is no competition, as a matter of fact, it is competition that brings creativities and innovations in the business world. This goes to show that if you are looking towards starting a groundnut oil production company, then you should brace up for competitions in the industry.

The truth is that you are expected to compete with other players in the Cooking Oil Production industry even if they are not producing groundnut oil. This is why most groundnut oil production companies are leveraging on creativity in terms of producing oil with low cholesterol, packaging and marketing to continue to stay afloat in the industry.

The increasing competition in the Cooking Oil Production industry is not hampering the performance of new entrants as most of them know how to recreate and re – strategize to attract more customers even if it is just households in their immediate community.

4. Know Your Major Competitors in the Industry

It in every industry, there are always brands that perform better or are better regarded by customers and the general public than the others. Some of these brands are those that have been in the industry for a long time, while others are best known for how they conduct their businesses and the results they have achieved over the years.

These are some of the leading groundnut oil production companies in the United States of America and in the globe;

• Fuji Vegetable Oil, Inc.
• American Vegetable Oil
• Adams Grain Co
• C P Vegetable Oil
• Columbus Vegetable Oils
• Smude Sunflower Oil

Economic Analysis

Starting a groundnut oil production company is not difficult but at the same time, it is a business that requires thorough economic and cost analysis if you are looking towards making profits in the industry.

Part of what you need to focus on in this line of business is how to build a standard groundnut oil production plant, robust distribution networks, branding and of course how to maintain your machinery and equipment and to take care of your overhead before your business breaks even. Other costs that should be considered during planning and budgeting are supply of peanuts, packaging materials and maintenance costs.

Lastly, in other to play safe with your investment, it is important that you hire the services of experts to help you carry out thorough economic and cost analysis before committing your resourcing to the business.

5. Decide Whether to Buy a Franchise or Start from Scratch

There are loads of factors that should be considered before choosing the option to follow. Some of the factors to consider are the cost of starting from the scratch or buying a franchise, your financial capacity, your vision, and your business skills and experience.

If your intention of starting a groundnut oil production business is to grow beyond one city, if you want to have presence in key cities in the United States and Canada, then starting your company from the scratch is your best option. But if you just want to start a business with the aim of making profits but you don’t have the required finance and experience to build a business from the scratch, then it will pay you to buy the franchise of a successful brand in the Cooking Oil Production industry if you are lucky to come by one.

Please note that most of the big and successful groundnut oil production companies around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success and of course you can build your own groundnut oil production company to become a successful brand with your distribution networks spread throughout the length and breadth of the United States of America and other countries of the world.

6. Know the Possible Threats and Challenges You Will Face

If you decide to go into groundnut oil production business today, one of the major challenges you are likely going to face is the presence of well – established brands in the Cooking Oil Production industry both in the United States of America and other parts of the world.

The only way to avoid this challenge is to create your own market by concentrating on grocery stores and households in your immediate community. So also, unfavorable government policies can also hamper the growth of your groundnut oil production company. There is nothing you can do as regards these threats and challenges other than to stay positive that things will work well for you.

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

If you have plans to launch a groundnut oil production business, the legal entity you choose will go a long way to determine how big the business can grow; some groundnut oil production companies design their business for national and others for international market by exporting and opening chains of distribution networks globally.

Generally, you can choose a general partnership, limited liability Company, or even a sole proprietorship for your groundnut oil production business. Ordinarily, sole proprietorship should have been the ideal business structure for a small – scale groundnut oil production business especially if you are just starting out with a moderate startup capital in a small neighborhood and just into production limited groundnut oil for local consumption in your immediate community.

But if your intention is to grow the business and have distribution network spread across the United States of America and other countries of the world via franchising, and then choosing sole proprietorship is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.

Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholders meetings and other managerial formalities.

These are some of the factors you should consider before choosing a legal entity for your groundnut oil production business; limitation of personal liability, ease of transferability, admission of new owners and investors’ expectation and of course taxes.

If you take your time to critically study the various legal entities to use for your groundnut oil production business with the ability to export and open chains of distribution networks all across the United States of America and other countries of the world, you will agree that limited liability company; an LLC is most suitable. You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public.

8. Choose a Catchy Business Name

When it comes to choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Usually it is the norm for people to follow the trend in the industry they intend operating from when naming their business.

If you are considering starting your own groundnut oil production business, here are some catchy names that you can choose from;

• Pure Gold® Groundnut Oil Production Co
• Perry Peanut® Cooking Oil Production Company, LLC
• Green Life® Vegetable Oil Production Company, Inc.
• Healthy Heart® Groundnut Oil Production Company, Inc.
• Little Droplets® Groundnut Oil Production Company, Inc.
• Lara Brown™ Groundnut Oil Production Company, Inc.
• Cooking Delight© Groundnut Oil Production Company, Inc.
• Pinker Lane ™ Vegetable Oil Production Company, LLC
• Jane Hollow© Groundnut Oil Production Company, Inc.
• Queens Oil© Groundnut Oil Production Company, Inc.

9. Discuss with an Agent to Know the Best Insurance Policies for You

In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your groundnut oil production company.

Here are some of the basic insurance covers that you should consider purchasing if you want to start your groundnut oil production company in the United States of America;

• General insurance
• Health/Medical insurance
• Liability insurance
• Building Insurance
• Workers Compensation
• Overhead expense disability insurance
• Business owner’s policy group insurance

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

If you are considering starting your own groundnut oil production company, usually you may not have any need to file for intellectual property protection/trademark. This is so because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

But if you just want to protect your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection. If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO.

11. Get the Necessary Professional Certification

When it comes to the groundnut oil production business, you do not need to have any formal training or special certification before you can be allowed to start the business. All you need is informal training that will give you the needed skills coupled with your own inbuilt artistic talents.

On the other hand, if you come across any form of certification that can aid you to conduct your groundnut oil production business properly, then by all mean try and pursue such certification.

12. Get the Necessary Legal Documents You Need to Operate

The essence of having the necessary documentation in place before launching any business in the United States of America cannot be overemphasized. It is a fact that you cannot successfully run any business in the United States without the proper documentations. If you do, it won’t be too long before the long hand of the law catches up with you.

These are some of the basic legal documents that you are expected to have in place if you want to legally run your own groundnut oil production business in the United States of America;

• Business and liability insurance
• Tax Payer’s ID
• Fire certificate
• Certificate of Incorporation
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Employee’s Handbook
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document (basically for online payment portal)
• Company Bylaws
• Memorandum of Understanding (MoU)
• Building License
• Franchise or Trademark License (optional)

13. Raise the Needed Startup Capital

Raising startup capital is perhaps one of the major concerns of entrepreneurs as it can be challenging to raise capital to launch a business idea. Your idea must be workable and promising for you to secure finance from financial institutions or from angel investors.

The first thing to put in place before sourcing for startup capital for your groundnut oil production business is to draft a detailed business plan. With a good business plan, you can easily convince investors to invest in your business. The truth is that no bank can give you a loan if you don’t have a good and workable business plan. Besides, investors will not take you seriously if you don’t have a business plan on ground before launching out to source for startup capital.

Here are some of the options you can explore when sourcing for startup capital for your groundnut oil production company;

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell of shares to interested investors
• Applying for Loan from your Bank
• Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
• Source for soft loans from your family members and your friends

14. Choose a Suitable Location for your Business

When it comes to choosing a location for a business such as groundnut oil production company, there are key questions you should answer and key factors that must be considered. You are expected to choose a location that is easily accessible especially as it relates to your distribution network and supply of peanuts. Affordability, availability of labor and safety are also some of the factors that you should consider.

Because groundnut oil is used by households and commercial users, it is important to choose a location that will give you leverage to compete in the industry as a new entrant and also to make reasonable profits.

The location you chose to launch your groundnut oil production company is key to the success of the business, so you should rent or lease a facility in a visible location; a location where the demography consists of people and businesses with the required purchasing power

Most importantly, before choosing a location for your groundnut oil production company, ensure that you first conduct a thorough feasibility studies and market survey. The possibility of you coming across similar business that just closed shop in the location you want to open yours can’t be ruled out.

15. Hire Employees for your Technical and Manpower Needs

If you are considering starting a groundnut oil production company, then you should make plans to build a standard groundnut oil production plant. A standard groundnut oil production plant includes oil extractors, vessels, tanks, and conveyor belt system et al. So, you are expected to put all this equipment and machine in place and also purchase standard distribution trucks.

Although you can get fairly used of the above listed equipment and machines, but it is advisable to go for new and latest machines and equipment that can serve you for a long time especially if you have the required money to make the purchase. Even if you don’t have the required amount, you can enter an agreement with the suppliers of such machines and equipment and spread the payment over a period of time.

As regards acquiring a facility, if you have the required finance, it is to your advantage to acquire a property or lease a facility to be used for your groundnut oil production plant; it usually gives you the freedom to design the facility the way you want to it to be and install safety gadgets as you so desire. But if you are low on cash, then you don’t have any option other than to rent a facility.

When it comes to creating a workforce structure for a standard groundnut oil production company, then you should look towards getting qualified and competent people to fill the following roles; Chief Executive Officer (Owner), Plant Manager, Quality Control Officer, Human Resources and Admin Manage, Merchandize Manager, Sales and Marketing Manager, Accountant, Production Workers, Distribution Truck drivers, and Cleaners.

Over and above, you will need a minimum of 15 – 20 staff members to successfully run a small scale but standard groundnut oil production company.

The Service Delivery Process of the Business

The groundnut oil production process includes: groundnut seeds preparation, groundnut pressing and groundnut oil refining. The starting point involves taking the groundnut seeds through a thorough cleaning process to remove sand, stalk, plant debris and any other unwanted particles.

Thereafter, the groundnut seeds have to be prepared for pressing, which usually involves size reduction of the groundnut seeds by breaking them and then conditioning by adjusting their moisture content and temperature, while keeping the seeds hot for a period of certain minutes.

In the next stage, the well – prepared seeds are conveyed via conveyor belt system to the screw pressing machine, which is the most popular method of groundnut oil production. The machine’s screw warm press the groundnut seeds as it moves to advance where the space is smaller and smaller.

Due to strong friction and high pressure, groundnut oil is pressed out. In addition, as the temperature in the machine’s pressing chamber rises, the output rate of groundnut oil also increases. Finally, the fresh groundnut oil comes out through the small openings in the bottom of the pressing chamber.

Lastly, the fresh crude groundnut oil obtained from the pressing machine is elucidated in a setting tank and then pumped through the filter press. The filtered crude groundnut oil is then channeled to the refinery for three stages of refining: neutralization, bleaching and deodorization and then filling into the required container, packaged and ready for distribution.

Please note that quality control is enforced at every stage of the process in order to ensure that only healthy groundnut oils are produced and sold to the public.

16. Write a Marketing Plan Packed with ideas & Strategies

Running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a groundnut oil production company, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well-known brands that determine the market direction for the cooking oil production industry.

As a matter of fact, your marketing strategy will center on quality, heart friendliness, low cholesterol, good packaging and pricing, and above all excellent customer service. The truth is that if you are able to put the above stated in place, you won’t struggle to retain your old customers and at the same time win over new customers.

Businesses these days are aware of the power of the internet and which is why they will do all they can to maximize the internet to market their services or products. In other words, a larger percentage of your marketing effort will be directed to internet users; your website will become your number one marketing tool.

These are some of the marketing ideas and strategies that you can adopt for your groundnut oil production company;

• Introduce your groundnut oil production company by sending introductory letters alongside your brochure to households and all players in the food preparation line of business such as hotels, restaurants, bakers, caterers, and snacks manufacturers et al. throughout the city where your groundnut oil production company is located and distributed
• Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across, so that those on the social media or those who read blogs will know what groundnut oil to purchase within your location
• Create a basic website for your business so as to give your business an online presence
• Directly market your products
• Engage in roadshows in targeted communities from time to time to promote your groundnut oil brand
• Join local groundnut oil production company associations for industry trends and tips
• Provide discount days for your customers
• Advertise our business in community based newspapers, local TV and radio stations
• List your business on yellow pages ads (local directories)
• Encourage the use of Word of mouth marketing (referrals)

17. Work Out a Reasonable Pricing for your Services & Products

One key factor that will help you sell your groundnut oil at rock bottom prices is to purchase your raw materials directly from peanut farmers and wholesalers in pretty large quantities. The truth is the higher the quantity of items that you purchase directly from wholesalers, the cheaper you tend to get them.

Another strategy that will help you retail your groundnut oil at the right price is to ensure that you cut operational cost to the barest minimum, and channel your efforts towards marketing and promoting your brand name. Aside from the fact that this strategy will help you save cost, it will also help you get the right pricing for your products.

You can also try as much as possible to work with independent contractors and marketers; it will help you save cost for paying sales and marketing executives.

18. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

If you are in business and you are not deliberate about boosting you brand awareness and communicating your corporate identity, then you should be ready to take on whatever the society portray your business to be.

If your intention of starting a groundnut oil production company is to grow the business beyond the city where you are going to be operating from to become a national and international brand by opening chains of distribution network and exporting your products, then you must be ready to spend money on promotion and advertisement of your brand.

No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your groundnut oil production company;

• Place adverts on both print (newspapers and food magazines) and electronic media platforms
• Sponsor relevant community based events
• Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, YouTube, Google + et al to promote your groundnut oil production company – brand
• Install your billboards in strategic locations all around your city or state
• Engage in roadshows from time to time in targeted neighborhoods to create awareness of your groundnut oil production company
• Distribute your fliers and handbills in target areas
• List your groundnut oil production company in local directories
• Advertise your groundnut oil production company in your official website and employ strategies that will help you pull traffic to the site
• Position your Flexi Banners at strategic positions in the location where groundnut oil production company is located
• Ensure that all your staff members wear your branded shirts and all your vehicles and trucks/vans are well branded with your company logo

Related Posts:

• How to Start an Organic Fertilizer Production Business
• 50 Best Raw Material Supply Business ideas
• How to Start a Palm Oil Processing Company – Sample Business Plan Template
• How to Start a Business Producing Garri Fortified with Vitamin A
• How to Start a Palm Kernel Oil Extraction Company – Sample Business Plan Template

Join our WhatsApp channel for Information

How to Start Ground Nut Oil Processing Business ?

Groundnut oil production business process, manufacturing process.

Cooking oil is an important and essential item in the FMCG sector. An average Indian consumes 15 Kg of oil in a year. Compared to other oils like sunflower oil, cottonseed oil, and soy oil, groundnut oil has more nutritional value.In addition to cooking, groundnut oil is used in the bakery and confectionery industry. Groundnut oil is used in soaps, salad oils, mayonnaise, etc.  Groundnut oil is expensive compared to other oils. Groundnut oil has good export potential making the Ground Nut Oil Processing Business is a profitable venture.

In India, groundnut is cultivated in 5.8 million hectares. Gujarat is the highest producer of groundnut oil in India. Groundnut seed contains 50-55% of the oil. It is one of the best oil seeds to extract oil from. High-quality groundnut is often exported leaving only second quality groundnut for Indian population. As groundnut oil is expensive, it is adulterated and sold by most oil mills. Therefore, pure groundnut oil has great demand these days. It has more vitamins, minerals, nutritional value and low levels of cholesterol. It is also suitable edible oil for Indian cooking.

Over 85% of the oil from the seed is extracted using the mechanical press. Groundnut undergoes many processes to produce most of its oil content. Following is the groundnut oil extraction process:

Storage → Cleaning → Dehulling → Grinding or rolling → Heating → Pressing → Refining  → Packaging.

1. Cleaning:- Clean the ground nuts properly to remove, dirt, sand, and spoil seeds. Use dry screening to remove all over or undersized seeds.

2. Dehulling:- The outer seed coat of groundnut is removed by a power-operated dehuller. Outer seed coat does not contain oil and hence is removed to avoid junk in oil cake.

3. Grinding or rolling:- Oil extraction is maximum with smaller particles. Grinding reduces the seed size. Rolling the seeds produces flakes. Large oil mills might use both grinding and rolling to extract maximum oil.

4. Heating:- Heating increases oil yield. It kills the enzymes that deteriorate oil quality.

5. Pressing:- Pressing the processed seeds using a lever press, mechanical expeller or hydraulic press separates the oil.

6. Refining:- The extracted oil is further refined to remove dust or dirt. Refining adds great value to the oil.

Read More: How to Start Lemongrass Oil Making Business ?

1. Perform Market Analysis:- In India, Gujarat holds the first position in producing groundnut oil . The state contributes to 9% in the groundnut production of the world and 25 to 30% of India. The country’s overall groundnut oil production depends on raw groundnut production.

2 Prepare a Project Report:- Create a project report with technical analysis, location details, manpower requirements and financial aspects. To create a project report, understand the production process, quality control required for raw materials, financial aspects like fixed cost projected sales revenue and working capital. A good project report can get you to finance from banks and financial institutions.

3.Arrange the Finance:- After creating the project report, arrange the finance. Try for funds from bank and venture capital firms.

4.Register the Business:- To establish a groundnut oil processing business, you will need a company registration with ROC, a Trade License , factory license, SSI Registration, BIS certification, Food Operator License, NOC from Pollution Control Board, fire license and AGMARK Certification Depending on your investing partners and investment pattern, form an LLP or Pvt. Ltd or Ltd Company.

After the registration, apply for MSME Udyog Aadhaar Registration,

5. Select a Working Location :- Oil milling requires a moderate covered space area depending on the size and quantity of your production. For small or medium scale production, 1000 Sq. Mar of covered space is required. Calculate the space required for production, storage, packaging, and official work. Ensure electricity supply and water.

6.Setup the Plant :- After obtaining the space, design a floor plan to install machinery, run electric cables, setup storage, etc. Visit some of the established units for an idea on best suitable plant setup.

7.Procure the Machinery :- Using the right machinery yields better quantity and quality of the oil. The main machinery required to groundnut oil production business are pre-cleaner, cans, and trays, Dust Blower, Hammer Mill, Screw conveyor, Roller crusher, Screw press, Filter press, Holding tank, Pumps, Neutralizer, Bleacher, Vacuum pump, Condenser, Deodorizer, Water treatment Set ad Boiler.

8.Hire Manpower :-Groundnut oil processing business requires labor. Manpower is also required for distribution and operating the machine.

9.Procure Raw Materials :-Shelled groundnut is the raw material required. Ensure regular availability of the raw material. Caustic soda and bleaching earth are also required for groundnut oil processing. Buy the most used material for packaging. There are a variety of packaging materials available like pouches, plastic bottles, and tins. Groundnut oil production business can be set up at any location in India as it is used throughout the country.

Many poor quality oils are available in the market for cheaper price. Gain trust in the quality of the oil you produce to establish yourself in the market. Pure groundnut oils are priced a little high. 2.5 Kg of groundnuts can produce 1 Liter of oil. So do not compromise the quality and priced affordably.

Sign Up For Our Newsletter

Disclaimer :The information contained in this Article is for general information purposes only. The information is provided by StartupYo (SAB Weblabs Pvt.Ltd). While we endeavour to keep the information up to date and truest to the best of our knowledge, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

Share this post:

You might also like:.

Best Detergent Powder Making Classes In Ahmedabad

Best Detergent Powder Making Classes In Jaipur

Best Detergent Powder Making Classes In Chennai

Provide your details.

• Best Products

How to Start Groundnut Oil Extraction Production Business

• April 7, 2023
• by Next What Business Research Team

Groundnut oil production is a financially profitable venture with huge export potential. In addition, you can initiate the groundnut oil processing operation on a 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, 420 kg of groundnut cake, and 40 kg of groundnut sludge.

Groundnut Oil Production Market Potential 

Groundnuts are a popular source of food throughout the world. Groundnut oil is used for cooking food and as a shortening or as a base for confectioneries and it can be used to make peanut butter. Groundnut oil ranks at the top among edible oils exported from India.

It is a premium oil and its cost is also high. Most other edible oils are priced lower than groundnut oil. Groundnut oil is available in the market in refined and filtered forms. Although filtered oils are nutritionally superior in quality.

The latest data shows that there are almost 75 countries that import groundnut oil from India in huge quantities. The total export value stands at 64 million US dollars.

1. Groundnut Oil Production License & Registration

In establishing a groundnut oil production unit, you will need to obtain several different licenses and registration from different Government authorities.

• Company Registration with ROC
• Trade License
• GST Registration
• Factory License
• Food Operator License
• BIS Certification
• ‘No Objection’ from Pollution Control Board
• AGMARK Certification
• Fire License

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 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 requirements. Check with your local DIC authority about any other required formalities.

2. Arranging Finance For Groundnut Oil Production Unit

Alike any manufacturing industry groundnut oil production business also involves two types of co st factors . One is fixed capital and the other 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 requirements, you can go for cash credit or the overdraft facility with your nearby bank or any financial institution.

3. Groundnut Oil Production Unit Setup & Machinery  

Selecting the right location for factory operation is an important aspect. The major required utilities are water and electricity. Easy availability of transport facilities and labor is important. Create a floor plan indicating specific space for raw material storage, finished products storage, production unit area, administrative workspace, storeroom for oil cakes, and space for miscellaneous usage.

Generally, you will need to have 0.50 acres of nonagricultural land for establishing an improved groundnut oil expelling unit. Here, you can install a plant with a processing capacity of 240 MT /annum. Additionally, the land must come with proper elevation.

The basic machine & equipment required are as follows:

• Pre-cleaner for cleaning the oil seeds
• Cans and trays for handling oil seeds
• Batch-type solar dryer
• Tapering screw types mechanical oil expeller
• Filter press
• Steel drums for storing edible oil and sedimentation of impurities
• Weighing balance
• Semiautomatic bottle-filling machine
• Molded polycarbonate bottle capping cum sealing machine

If you want to go for pouch packing, you will need to have an automatic pouch filling and sealing machine.

4. 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 and 50-55% meal. However, other required raw materials are caustic soda, bleaching earth, and packaging consumables.

5. 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.

a) Cleaning

The first step in preparing oil seeds for oil extraction is to clean them. Clean properly so that the oil is not contaminated with foreign materials. Therefore, it helps to proceed with the extraction process as efficiently as possible.

During the process, carefully inspect the seeds to remove stones, sand, dirt, and spoilt seeds. Additionally, you can use a dry screening technique to remove all material that is over or undersized. Sometimes washing is also resorted to but it must be avoided as the plant tissue will have to be dried at a later stage.

b. Dehulling

During the process, remove the outer seed coat of the oilseed. Generally, you can use a power-operated dehuller for the operation. Removal of the outer seed coat is necessary as it does not contain oil and inclusion of it in the unit operations makes the oil extraction process less efficient. Some seeds such as groundnut can be shelled by hand. Some others such as sunflower seeds are usually hulled in machines. Still others, like safflower and colza, cannot be shelled.

c. Grinding or rolling

Seed is not usually pressed whole since oil extraction is more efficient if the seed is in smaller particles. Herein lies the relevance of the grinding process. Grinding is the process of reducing particle size. Additionally, you can use small motor-powered hammer mills for unit operation.

Another alternate process used for the reduction of particle size is rolling the oilseeds to produce flakes for oil extraction. Many large-scale commercial plants find this the most effective approach. Additionally, with large oilseeds, it may be necessary to grind the seed first, and then put the pieces through the flaking rollers.

It is the final step for preparing the raw material for oil extraction. Heating leads to increased oil yield. Heating helps in killing those enzymes present in the plant tissue which have a deteriorating effect on oil quality.

Moreover, if you don’t use the oilseed cake for feed or feed, heating is useful as it increases protein availability. Sometimes, you can press the oil-bearing material without heating it. Oil extracted in this way is called cold press oil.

e. Pressing

During processing, press the conditioned oil seeds/oil-bearing material using a lever press, hydraulic press, or a mechanical expeller to remove the oil.

f. Refining

When you use the lower quality feedstock for oil extraction, you can use this process. Basically, it helps in removing undesirable cloudiness, color, and flavor from the extracted oil.  In groundnut oil production, mentioning the shelf life on packets or labels is mandatory.

Growing Wealth with Groundnut Oil Business

​The global groundnut oil market is growing rapidly, with increasing demand from the food industry, especially in developing countries. The health benefits of groundnut oil, including its high monounsaturated fatty acid content and the presence of antioxidants, make it a popular choice among health-conscious consumers. Groundnut oil milling is a profitable business that can provide employment opportunities and contribute to the local economy. This column aims to provide a complete guide to starting a profitable groundnut oil milling business in different countries and regions.

• Ultimate Guide to Launch Groundnut Oil Milling Business in Nigeria
• Groundnut Oil Processing Plant in India: How to Set Up and Profit

World Top Groundnut Producers

Groundnut Oil Extraction Technology & Equipment

Groundnut oil extraction technology and equipment have evolved significantly over the years, with the aim of increasing efficiency and reducing production costs. There are various methods of extracting groundnut oil, including mechanical pressing, solvent extraction, oil refining and more.

There are several types of equipment involved in groundnut oil production, depending on the method of extraction used. Here are some of the common equipment used in groundnut oil production: seed cleaning equipment, oil press machine, solvent extraction plant, refining equipment, filling and packaging equipment . Overall, the equipment used in groundnut oil production varies depending on the method of extraction used and the scale of production. Industrial-scale production may require larger and more sophisticated and automatic equipment compared to small scale groundnut oil mill plant.

Groundnut Oil Milling Business Partner – ABC Machinery

As a leading engineering company in China, ABC Machinery provides one-stop engineering and construction services to edible oil processing plant for customers worldwide, from factory designing, equipment manufacturing, installation and commissioning, and after-sales services. We offer FREE consulting supports and professional guidances to potential clients who have questions or need help with their groundnut oil milling business.

• Oilseeds Pretreatment
• Oil Extraction Plant
• Oil Refinery Plant
• Low Temperature Extraction
• Oil Filling Machines

• 100 TPD Fully Automatic Sunflower Oil Factory Setup in Kazakhstan
• Soybean Oil Extraction Plant Project Report and Business Plan
• 20TPD Coconut Oil Refining Factory in the Philippines
• 5TPD Small Scale Plant of Soyabean Oil Refinery in Ghana
• Small Scale Soybean Oil Mill Plant Exported to Ghana

• Make a Website
• Online Jobs
• Deals & Coupons

How to Start Small Scale Groundnut Oil Processing Business

• June 4, 2023
• by Rupak Chakrabarty

Do you want to start a small-scale groundnut oil production business? This article includes a sample groundnut oil processing project profile with machine details, production process, cost, and profit.

Groundnut kernel contains 50-55% of the oil. Groundnut oil is an important edible oil throughout the world. The oil has good nutritional value. And it doesn’t create any cholesterol problems. Hence, it is a popular cooking medium.

Apart from cooking, the product is a very essential ingredient in the bakery and confectionery industry. The oil is used as a substitute for olive oil and other edible oils, soaps, salad and cooking oil, mayonnaise, and margarine. Apart from the domestic market, groundnut oil has the tremendous export potential also.

Hence, starting a groundnut oil production business is a highly profitable venture for entrepreneurs who want to start a business in the edible oil industry.

10 Steps for Starting Groundnut Oil Manufacturing Business

#1. market analysis.

In India, Gujarat holds the first position in producing groundnut oil. The state shares  9% of the groundnut production of the world and 25 to 30% of India. The country’s overall groundnut oil production depends on raw groundnut production.

Read:   Top Small Scale Manufacturing Business Ideas

However, the demand for groundnut oil depends on population and income. As a product targeted to a segment of the market groundnut oil will be more dependent on income. Also, you need to check the packaging of the existing manufacturing companies that are established in the market. Actually, the market analysis helps you in making decisions and providing inputs in preparing the business plan or project report.

#2. Groundnut Oil Production Project Report

The second step is preparing the project report. You must prepare a customized project report according to your need. The project report consists of two major parts. These are technical analysis and financial aspects. And the formation of the two specific parts depends on each other.

In the technical part, you need to mention the plant capacity, manufacturing technology know-how, production process, raw materials quality control measures, and your business objective with mission and vision. The financial aspect contains the fixed cost, working capital, projected sales revenue, ROI, and the break-even.

A project report helps in getting finance from financial institutions including banks. Also, it helps in taking off the project with fewer mistakes.

#3. Arrange the Finance

After preparing the project report, you will need to arrange the finance. If you want to initiate the business with your own fund it’s well. Otherwise, you will need to arrange the fund from banks or venture capital firms.

Generally, banks provide different types of customized loans depending on your specific requirement. If you only need finance for purchasing machinery, then you can apply for machinery hypothecation. If you want only working capital, then banks provide cash credit or overdraft facilities. However, you can also apply for total project finance.

#4. Business Registration & License

In starting this type of business, business registration is a must. Depending on your management and investment pattern, you can form an LLP or Pvt. Ltd or Ltd company.

Suggested Read:   How to Register a Company in India

Only after the registration, you can apply for MSME Udyog Aadhaar Registration, Trade License, and Business PAN Card. Open a current bank account for the transaction. Apply for FSSAI registration and AGMARK. Finally, apply for the BIS registration.

#5. Select a Location for the Unit

Next, you will need to determine a space for the manufacturing operation. Generally, oil milling needs a moderate covered space area. Also, it depends on the unit size and quantity of production output you want. For a small or medium scale unit, you will need 1000 sq Mtr of covered space. Keep 500 Sq Mtr for the production area, and the rest you can use for storage, packaging, and official work.

The location must have an electricity facility and water supply. In starting a groundnut oil production business, it is advisable that you start the unit at a rented space. Also, you can avail long-term lease facility in the industrial zones.

#6. Establish the Plant

After determining the space, you will need to establish the unit. If you are able to manage a covered space it’s good, otherwise, you can build the shade with color-coated steel roofing sheets. Generally, the sheet companies help in design, development, manufacture, and erection.

In addition to that, you will need a floor plan. And according to the machinery installation plan, you will need to do the electrical wiring. Also check, what type of furniture and fixture you need to run the production.

#7. Procure the Machinery

Procuring the right machinery is highly crucial in this business. You can find a lot of oil milling machinery supplying companies in India and even in the international market. Before placing the final order, compare the rates and customer feedback. Some of the basic required machines are

• Seed cleaning unit
• Dust Blower
• Hammer Mill
• Screw conveyor
• Bucket elevator
• Roller crusher
• Screw press
• Filter press
• Holding tank
• Neutralizer
• Vacuum pump
• Water treatment Set

#8. Recruit Manpower

Groundnut oil production is a labor-intensive business. Also, you need manpower for official work and distribution. However, the specific manpower recruitment depends on the specific business model. Here, we put a list of basic requirements.

• Production and technical head
• Machine operator
• Storekeeper
• Semi-skilled plant worker

#9. Procure Raw Materials

In this business, the main necessary raw material is shelled groundnut. And you will need to ensure the regular availability of this item. Also, you will need to procure caustic soda and bleach earth in a specific quantity.

Other cost-intensive raw materials are packaging consumables. Generally, groundnut oil comes in two different packaging. Either in the poly pouch or in the plastic bottles. also, you will need to provide different quantity packaging.

#10. Groundnut Oil Production Process

For oilseeds with high oil content such as groundnut, first, you will need to apply the mechanical pressing and extract over 85% of the oil. And you can extract the remaining oil from the expeller cake with solvent.

However, solvent extraction is more appropriate for large-scale processing than small-scale edible oil plants. Therefore, the mechanical pressing technology is more perfect in small and medium scale op[eration.

Generally, the groundnut oil production process contains three basic stages. These are seed preparation, pressing, and crude oil refining.

The seed requires undergoing a thorough cleaning process to remove sand, stalk, plant debris, and any other foreign matters by rotary or table sieve. After cleaning, the seeds are ready for efficient oil recovery by pressing.

The stages involve the size reduction of the seeds by breaking them and then conditioning the seeds by adjusting their moisture content and temperature. Then, you need to convey the prepared seed to the screw pressing machine. Here, it gets pressed by the action of the worm and outer shell. Then, you need to clarify the crude oil in a settling tank.

After filtering through the filter press, you need to pass the crude groundnut oil to the refinery. In the refinery, it passes through three steps including neutralization, bleaching, and deodorization. The plant requires a containment vessel for the collection and treatment of wastes to be generated in the process.

If you want to start a business that has the potential to earn long-term revenue, then groundnut oil production is just a perfect business for you.

Hello, I’m Rupak Chakrabarty, a passionate advocate for small and medium enterprises (SMEs) and the driving force behind MUVSI Consulting, where I serve as a dedicated small business coach. With years of experience in the entrepreneurial world and a deep-rooted commitment to helping SMEs thrive, I bring a wealth of knowledge, expertise, and guidance to aspiring and established business owners alike.

Share this:

• News and Events
• Worldwide Installations
• Company Brochure

Call Now +91 99157 43183

Write to us [email protected]

• Company Profile
• About Founder
• About Chairman
• Chairman’s Message
• Production Head
• Executive Director
• Vision & Mission
• CSR & Child Labour
• Our Presence
• Certifications & Memberships
• Awards & Achievements
• Testimonials
• Fabrication Shop
• Machine Shop
• Assembly Shop
• Packaging and despatch
• Oil Expeller / Oil Press – G 10
• Oil Expeller / Oil Press – G 20
• Oil Expeller / Oil Press – G VC-I
• Oil Expeller / Oil Press – G 60
• Oil Expeller / Oil Press – G MK-III
• Oil Expeller / Oil Press – G 150
• Oil Expeller / Oil Press – G MK-IV
• Oil Expeller / Oil Press – G MK-V-C
• Oil Expeller / Oil Press – G 240
• Oil Expeller / Oil Press – G 600
• Oil Expeller / Oil Press – G 1500
• Oil Expeller / Oil Press – G 2400
• Oil Expeller / Oil Press – Palm Kernel
• Soybean Extruder
• Seed Decorticator
• Seed Cleaner
• Hammer Mill
• Copra Cutter
• Seed / Nut Cracker
• Copra Dryer
• Filter Press with Pump
• Pressure Leaf Filter
• Polishing Filters
• Vibro Separator
• Boiler – Horizontal (IBR)
• Boiler – Vertical (Non IBR)
• Thermic Fluid Heater
• Water Softening Plant
• Solvent Extraction Plant
• Edible Oil Refinery Plant
• Fish, Poultry & Animal Feed Mill Plant
• EFB, MSW, Plastic & Industrial Shredder
• Material Handling Equipments
• Palm Kernel & other Oil Expeller / Oil Press Spare Parts
• Enquire Now
• News & Events

• Groundnut Oil Manufacturing Process Flowchart
• Coconut Oil Manufacturing Process Flowchart
• Cottonseed Oil Manufacturing Process Flowchart
• Palm Kernel Oil Manufacturing Process Flowchart
• Soybean Oil Manufacturing Process Flowchart
• Sunflower Oil Manufacturing Process Flowchart
• Jatropha Oil Manufacturing Process Flowchart
• Sesame Oil Manufacturing Process Flowchart
• Mustard Oil Manufacturing Process Flowchart
• Corn-Maize Germ Oil Manufacturing Process Flowchart
• Sheanut Oil Manufacturing Process Flowchart
• Safflower Seed Oil Manufacturing Process Flowchart
• Castor Oil Manufacturing Process Flowchart
• Cashew Nut Shell Liquid Manufacturing Plant Process Flowchart

Groundnut Oil Manufacturing Process

Groundnut oil manufacturing process is divided into two methods, the first is mechanical pressing and the second is solvent extraction. Mechanical pressing can extract 85% oil and the remaining oil is extracted by the solvent extraction method. According to mechanical pressing technology, you can divide the peanut oil production process into three phases. These are peanuts preparation, pressing and crude oil refining.

Here are the basic steps to extract the groundnut oil

Step 1: cleaning, step 2: dehulling, step 3: cooking, step 4: pressing, step 5: filtration.

After harvesting groundnut are received at processing facilities. Batches of harvested peanuts will contain whole peanuts in the shell, some shelled peanuts, and foreign objects (e.g., leaves, nodes, weed seed, etc.). The peanuts are then cleaned using cleaning machine so that oil is not contaminated with foreign materials. Therefore, it helps to preform the extraction process as efficiently as possible.

After cleaning, removal of the outer shell is necessary as it does not contain oil. The dehulling process can be done manually by labor, or by use of dehuller to reduce the manpower and shorten production time. The purpose of dehulling before oil pressing is to reduce the absorption of oil by the shell, increase the yield of oil, improve the processing efficiency of the peanut oil processing machine and reduce equipment wear and tear. This oil can also improve cake quality and added value.

Cooking assists in breaking the cell walls and opens the cells that contain the oil. It also decreases the thickness of the oil so that it flows out more easily. Sometimes, pressing is done without heating it. Oil extracted without heating is called cold press oil.

The peanuts are transfer by conveyor and fed through the hopper of screw press machine. Continuous transport of material by the screw shaft causes pressure to increase to a level needed, which increases friction inside the screw press and generates heat which lowers viscosity of the oil in the crushed seeds thereby increasing the oil flow rate. The oil and cake are usually collected at the oil outlet and press cake exit /choke gap.

After pressing, crude peanut oil still remain impurities in the extracted oil. To aid in the removal of the remaining impurities, oil filter press machines are usually employed. The filtration systems are able to remove large and small size particulates, and even water from the oil. Read more : Groundnut Oil Refinery Process

Equipment & Machinery for starting Groundnut Oil Manufacturing Business

Some of very important Groundnut Oil Mill Machinery and Equipment are:

• Groundnut Decorticator
• Cooker / Kettle
• Oil Expeller Machines
• Crude groundnut oil storage tanks
• Oil Filter Press Machines
• Oil Refinery Machines
• Bucket Elevator
• Screw conveyor
• Filtered oil storage tanks
• Volumetric filling machine
• Storage drums

Cost of Groundnut Oil Production Plant

The investment in oil mill machinery & equipment is closely related to production output and selection of extraction machines. Feel free to contact us and tell us your requirements, then we can offer the best customised business plan and help on process design, equipment selection, factory layout, cost details and profitability of peanut oil production.

Related Posts

Groundnut Oil Mill Plant

30 TPD Peanut Oil Processing Plant Installed in Sudan

200 TPD Groundnut Oil Processing Plant installed in Sudan

Enquiry Now

(Please fill the below form)

• Troubleshooting

Groundnut Oil Processing Business In India Cost, Profit, Business Plan, Requirements | SkillsAndTech

Commencing a groundnut oil processing business in India is a highly profitable venture for entrepreneurs who wish to kick-start a business in the edible oil industry.

Groundnut oil is viewed as essential edible oil all over the world. The oil is widely known for its good nutritional value. Another notable feature associated with this oil is that it doesn’t create any problem related to cholesterol. Hence, it has gained acclaim as a popular cooking medium.

Besides cooking, the product is a commonly used ingredient in the bakery as well as the confectionery industry. The oil is utilized as a substitute for olive oil. Also, it is used in other edible oils, soaps, mayonnaise, salad and cooking oil, and margarine. The potential of groundnut oil is not confined to the domestic market as it has enormous export potential as well. Starting a groundnut oil production business demands feasibility research preparation, acquirement, as well as installation of machines in the suitable accommodation, recruitment of personnel, as well as project commercial take-off.

In a year, an average Indian consumes about 15 Kg of oil. The cultivation of groundnut takes place in 5.8 million hectares in India. Gujarat has grabbed the top position in terms of groundnut oil production in India. Groundnut seed entails 50-55% of the groundnut oil. It is deemed as one of the best oil seeds to extract oil from. Superior quality groundnut is usually exported, leaving only low-quality groundnut for the Indian population. Since groundnut oil is expensive in the market, it is adulterated and traded by most oil mills. Hence, pure groundnut oil has tremendous demand these days. This write-up is a thorough guide that will help you start your groundnut oil processing business in India. 

Table of Contents

Groundnut Oil Processing Business: Procuring the Right Machinery

In groundnut oil processing business, procuring right machinery is of utmost importance. You can get various oil milling machinery supplying companies in India and also in the international market. Before proceeding ahead to make the final order, you need to compare the rates as well as the customer feedback.

 Some of the widely used and in-demand machines are-

• Hammer Mill
• Seed cleaning unit
• Dust Blower
• Bucket elevator
• Roller crusher
• Screw conveyor
• Screw press
• Holding tank
• Filter press
• Vacuum pump
• Neutralizer
• Water treatment Set

Business Registration & License 

Registration of firm:.

You may start the small to medium Business either a Proprietorship or Partnership Firm.

If you are starting this Business as One Person Company, then you have to register your firm as a proprietorship.

For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).

GST Registration:

it is mandatory to get the GST number to run the business; you need to apply for the GST registration.

Trade License:

obtain trade license from local authorities

MSME/SSI Registration:

this MSME/SSI Registration will help you to get schemes and facility for the business offers by the state government

BIS certification:

BIS has mentioned the specific quality standard for Business. ISI specification for the

Trade Mark:

you can secure your brand with trademark registration

IEC code: 

IEC code is essential for the export of the product

Employees 

state insurance which is an insurance scheme for workers.

ESI Registration:

Employees provident fund is compulsory for the business where more than 20 employees are working.

To comply with the above processes and registration, one might need any legal expert who would help in absolute legal compliance to meet industrial standards. 

Face Mask Manufacturing Business

Toothpick Manufacturing Business

Cookies Business In India

Groundnut Oil Processing Business Process in Detail

By utilizing the mechanical press, about 85% of the oil from the seed is being extracted. Groundnut goes through many processes in order to generate most of its oil content.

Given below is the extraction process for the groundnut oil processing business:

1. Cleaning-  It’s essential to clean the ground nuts in a proper manner in order to eliminate dirt, sand, as well as spoilt seeds. Also, you can use dry screening to eradicate all over or undersized seeds present in front of you.

2. Dehulling-  Removal of the external seed coat of groundnut takes place with the help of a power-operated dehuller. External seed coat doesn’t entail oil. Thus, it is removed in order to avoid junk present in the oil cake.

3. Grinding or Rolling-  Grinding plays a significant role in reducing the seed size. Rolling the seeds plays a crucial role in producing flakes. Usually, oil extraction is maximum with tinier particles. Large oil mills are engrossed in using both grinding as well as rolling to extract maximum oil.

4. Heating-  The heating process is helpful in increasing oil yield. Also, it is advantageous as it kills the enzymes that lower down the quality of the oil.

5. Pressing-  Pressing the processed seeds by utilizing a mechanical expeller, lever press, or hydraulic press segregates the oil.

6. Refining Process-  The extracted oil must further pass the refining process to remove dirt or dust. Refining eventually enhances the value of the oil.

Set up the Plant 

• After ascertaining the space for your groundnut oil processing business, you will look for establishing the unit.
• If you can manage a properly covered space, it will be great; otherwise, you can construct the shade with color coated steel roofing sheets.
• Usually, the sheet companies assist in design, manufacture, development, as well as erection.
• Most importantly, you should have a floor plan.
• As per the machinery installation plan, you will continue with the electrical wiring. Moreover, you need to check what type of furniture as well as fixture you will require to run the groundnut oil processing business in India.

Groundnut Oil Processing Business in India: Opt for an Appropriate Working Location

Oil milling demands a moderate carpeted space area depending on the volume as well as quantity of your processing. 1000 Sq. Mtr. of capped space is needed for small or medium-scale production. Measure the space required for the purpose of production, storage, packaging, and official work. Also, there is a need to ensure electricity supply and water.

Market Analysis

• In India, Gujarat retains the first spot in terms of producing groundnut oil.
• The state shares about 9% of the groundnut composition of the world and about 25 to 30% of India.
• The nation’s overall groundnut oil processing business depends on raw groundnut production.
• Nevertheless, the demand for groundnut oil relies on the population as well as income.
• As a product targeted to a division of the market, groundnut oil will be more reliant on income.
• Furthermore, you would have to inspect the packaging of the present manufacturing companies that are rooted in the market.
• Truly, the market analysis assists you in making decisions and rendering inputs in developing the groundnut oil processing business plan or project report.

Cook a Project Report concerning Groundnut Oil Processing Business 

Design a project report with the technical review, location details, manpower demands and financial perspectives. To build a project report, learn the production process, quality control needed for raw materials, financial elements such as projected sales revenue, fixed cost, and working capital. A great project report can help you get finance from banks as well as financial institutions.

Proper Packaging is the Key!

TATA Indicash ATM Franchise

Jackfruit Business In India

Custard Powder Making Business

Several groundnut oil brands are present in the market. The way you package your own product will ascertain where it will gain a good response in the market or not. You must package your groundnut oil in such a manner that even those who look at it for the first time start developing curiosity in mind concerning what’s in the package.

Always remember to entail the logo of your company, company name as well as the contact on each pack. It will enable an individual to order a substantial amount of information to learn how to communicate with your company.

Groundnut Oil Processing Business in India: How to Market your Groundnut Oil

• To lift the spirits of customers entailing retailers as well as wholesalers, to safeguard their groundnut oil on other brands, you must have a robust marketing strategy.
• Firstly, you can proceed ahead with extending them a promo offer.
• Secondly, you may actively participate in food or cooking exposure as well as share your groundnut oil samples.
• Eventually, you can compose an online blog where you may post blogs/articles from an e-commerce store on different topics such as groundnut oil as well as its health benefits, where online visitors can come and place their orders.
• You are also free to take advantage of the best social networking sites with traffic in millions in order to make sales.
• For instance, you can easily make a YouTube channel and post small videos on the health benefits of oil, and also, you can mention a link to your e-commerce site.
• The groundnut oil processing business in India is simple as well as a money-minting one.
• With the several advantages on the health front associated with this product, the business is trending in India and all over the world.

Health Benefits of Groundnut Oil

Organic groundnut oil is deemed as fairly healthy.

Given below are the health benefits of groundnut oil that have made people purchase this oil and also encouraged people to start groundnut oil processing business in India-

Regulates and Improves Heart Health

Groundnut oil carries absolutely negligible cholesterol and hence does not attach undesirable dietary cholesterol to our regular consumption. Atherosclerosis, an ailment in which plaque develops around the arteries and even leads to thickening, can therefore be avoided. It further has a substance known as resveratrol that reduces blood pressure and lessens stress on the cardiovascular system.

Source of Unsaturated Fats

Groundnuts comprise around 40 to 50 % fat, and a tablespoonful of the oil produced from them includes 13.5 grams of fat. This fat happens in the form of various types of fatty acids such as linoleic acid, stearic acid, oleic acid, etc. Most of them fall beneath the category of unsaturated fat (both poly as well as mono), which is assumed to be a reliable, healthful source of fat. This lessens the risk associated with heart disease and pulls down bad cholesterol levels.

Vitamin E assists preserve good skin health, making it appear young as well as healthy. It checks wrinkles, premature aging, as well as marks created by free radicals.

Encompasses Antioxidants

Real Estate Business

Open Pathology Lab

Car Bike Washing Business

Antioxidants preserve the body from toxins as well as free radicals. Groundnut oil carries phytochemicals as well as vitamin E, both of which falls under the category of natural antioxidants. It also diminishes inflammation if consumed on a regular basis. It is supposed to keep several diseases like cancer at bay.

Restricts the Growth of Cognitive Disorders

Resveratrol present in groundnuts, in extension to lessening blood pressure, also reduces the progress of cognitive disorders such as dementia & Alzheimer’s disease. As an antioxidant, it inhibits free radicals from crumbling down neural pathways in mind, hence hindering the progress of the disease.

The groundnut oil processing business in India is a passion-driven business of ample scope. Due to numerous health benefits, the soaring demand for this edible oil is not going to slow down anytime soon. The export potential associated with this form of business lures the attention of edible oil business enthusiasts. 

You May Also Like

How To Start Food Blog | SkillsAndTech

How To Start Lemongrass Oil Making Business | SkillsAndTech

Toothpick Manufacturing Business In India Cost, Profit, Business Plan, Requirements | SkillsAndTech

How to Start Your Own Groundnut Oil Business

By henry sheykin, resources on groundnut oil.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Bundle Business Plan & Fin Model

Introduction

The demand for groundnut oil is booming, with consumption expected to reach 9.52 million tons by 2021 according to a recent market report. This is largely due to its versatility and healthfulness, as well as the emergence of new and improved production techniques, making groundnut oil an attractive and profitable venture – if undertaken with a strategic approach.

With the right plan and strategy, anyone can open, start or launch their own groundnut oil business. To help you do that, here is a checklist of 12 steps divided into different categories – from developing a business plan to securing financing and laying down operational plans – that can guide you into setting up a successful and sustainable business of your own.

Make Sure To Create A Comprehensive Business Plan That Outlines Goals, Strategic Objectives, And Long-Term Viability.

Creating a comprehensive business plan is an essential first step for any entrepreneur seeking to start an oil business. This document will serve as a blueprint for achieving success in the long run and should include the following:

• Outline your goals and understand what you want to achieve with your business.
• Make sure your strategic objectives are clearly stated.
• Develop a financial model that will help you estimate potential profits and ROI.
• Write up a business plan with a financial summary, budget, and projected cash flows.
• Include a competitive landscape analysis, market research, and customer segmentation.
• Document your long-term sustainability plan, including strategies for adapting to changes in the market.

Creating a comprehensive business plan requires analysis and foresight. Try to answer important questions such as: How will you make money? How will you enter the market? What competitors do you have?

Enlist the help of experts and advisors if necessary to ensure you create a thorough and viable business plan. This will provide the foundation for the success of your business, so it's best not to let it be taken lightly.

$169.00 $99.00 Get Template

Develop A Financial Model To Estimate Potential Profits, ROI, And Other Key Metrics

Creating a financial model that accurately predicts the return on investment (ROI) of a groundnut oil business is essential in ensuring long-term viability. Business owners need to consider various factors that can influence the success of the venture, such as the cost of the raw materials and labor, operating expenses, and taxes.

To develop an effective financial model, it is essential to know how to accurately estimate the potential profits and ROI. Here are some tips for developing an optimal financial model for a groundnut oil business:

• Accurately estimate revenue assumptions by researching and considering current groundnut oil prices, market trends, and emerging customer segments.
• Calculate cost assumptions by analyzing operating expenses, cost of labor, and associated taxes.
• Develop a gross-margin calculation to determine the profitability of the venture.
• Identify potential growth scenarios and develop plans that can maximize potential returns.
• Account for unexpected costs that may arise throughout the course of business operations.

It is essential to conduct a thorough financial analysis in order to accurately predict potential profits, ROI, and other key metrics. With the right financial model, business owners can make sound decisions that ensure the long-term success of their groundnut oil business.

Secure Necessary Permits And Licenses For The Business, Ensuring It Is In Compliance With Local Laws And Regulations.

Before you can open and operate a groundnut oil business, you need to secure the necessary permits and licenses required by local laws and regulations. To do this, you must:

• Research the types of permits and licenses needed in your state. Every state has different laws and regulations governing business operations, so you need to make sure you are in compliance.
• Contact your local business regulatory office to get a complete list of required permits and licenses. Once you have the list, you can determine which ones you need to apply for.
• Gather the necessary paperwork and submit it to the applicable authority. You may need to provide additional paperwork or meet certain criteria before you are approved for a permit or license.
• Pay the necessary fees for the permits or licenses. Different licenses have different associated fees so make sure you are aware of what you will have to pay.
• Once your application is approved and your fees are paid, make sure to keep a copy of the permit or license in a safe place.

By taking the time to secure the necessary permits and licenses, you can ensure that your business is running in compliance with local laws and regulations. This is an important step to ensure its success.

Identify and Evaluate Potential Suppliers That Can Provide Quality Groundnut Oil at a Competitive Price

When launching a groundnut oil business, it is essential to source quality suppliers and obtain a competitive pricing structure to remain competitive in the market. To identify and evaluate potential suppliers of groundnut oil, there are a few important steps to consider.

• Evaluate Production Quality and Feedback: First, consider the level of quality standards that the suppliers provide for the groundnut oil. Ask for samples and assess the color, texture, and aroma of the oil. Check if the supplier has any complaints based upon previous customers' reviews.
• Research Cost vs. Quality: When evaluating potential suppliers of groundnut oil, make sure to research the cost and associated quality. Compare the cost of different suppliers and their respective quality in order to determine which supplier is the most cost-effective and reliable.
• Check Delivery and Returns/Refunds: It is essential to consider delivery options as well as refund and return policies in case of any issues. Assess how long it takes for the supplier to delivery goods and evaluate the supplier's returns and refunds policy.
• Evaluate Potential Collaborations: Consider potential collaborations with suppliers in order to find out if there's any scope for new or better pricing discounts or additional services. This could offset costs or enable quality access to the necessary raw materials.
• Leverage Online Platforms and Reviews: Conduct additional research and find out more about potential suppliers through online platforms and reviews. Consider factors like shipment tracking capabilities, quality assurance, customer service, and more to make an informed decision.

Develop A Pricing And Cost Structure That Reflects The Value Of The Product And Considers Customer Segments.

To ensure the success of your groundnut oil business, you need to develop an effective pricing and cost structure that reflects the value of your product and considers your customer segments. Here are some tips and tricks to help you create an effective pricing and cost structure:

• Evaluate the market: Before you launch your groundnut oil business, it is important to understand the market you're operating in and determine what prices customers are currently paying for quality groundnut oil. This will help inform your pricing and cost structure.
• Consider your overall cost structure: You need to consider the cost of raw materials, overhead, labor, and various other expenses when creating a pricing and cost structure for your business. Make sure your pricing structure covers all of these costs, plus an extra margin for profit.
• Identify customer segments: Identifying customer segments is an important step in designing a pricing and cost structure. Consider the needs and wants of different customer segments and target them with different price points.
• Be flexible: Your pricing and cost structure should be flexible so you can adjust them according to the changing needs of your customers and the market. This will help you remain competitive in the market and get the most out of your business.
• Provide discounts: Providing discounts is another great way to attract more customers and boost sales. Consider offering discounts for bulk purchases, promotional campaigns, or seasonal sales.

Research And Develop A Direct-To-Consumer Marketing Strategy

In order to successfully sell your groundnut oil business products, you need to develop a direct-to-consumer marketing strategy. Here are some key tips to help you get started:

• Define your target market. Start by researching the characteristics and interests of your ideal customer, as well as what motivates them to buy products like yours.
• Set up a customer database. Collect customer data and make sure to store it securely and ethically. This will give you valuable insights into their buying behavior, which can be leveraged to create more timely and personalized messaging.
• Integrate with social media. Take advantage of popular social media platforms to build relationships with your customers and to promote your products.
• Establish an analytic system. Track the performance of online marketing campaigns, measuring ROI and other metrics to gain insight into which channels and messages perform best.
• Create content. Develop high-value content to engage customers and keep them informed about your products and brand.
• Develop an email newsletter. Regularly email updates regarding new products, discounts, and other promotions to keep customers informed and engaged.
• Advertise. Utilize paid advertising platforms such as Google Ads and Facebook Ads to reach new customers and drive sales.

Identify Potential Retail Partners and Establish Relationships With Those That Offer Mutual Benefit.

Identifying the right retail partner is crucial for the success of a groundnut oil business. Investing the time to evaluate potential retail partners is well worth it. Here are some tips to help with the process.

• Evaluate each retail partner on a range of criteria including budget, services, customer base, customer loyalty, location, and visibility.
• Research trends in the industry to get a better understanding of customer preferences.
• Make sure the partnership meets the customer’s needs and provides suitable benefits for both parties.
• Gather customer feedback on the potential retail partner’s service.
• Develop a detailed agreement that outlines the terms of the partnership. This includes the services the retail partner will provide, legal procedures, customer information, and customer feedback.
• Establish a mechanism for monitoring the performance of the partnership.
• Create incentives to promote loyalty and repeat business.

By investing the time to evaluate potential retail partners and establish relationships with those that offer mutual benefits, a groundnut oil business can ensure a successful launch and longevity.

Create A Website And Other Online Presence For The Business.

Having an online presence is essential for reaching customers and showing potential partners the value of your business. Here are a few tips to help you establish your online presence in the most efficient and effective way:

• Choose the right platform for your website. WordPress is one of the most popular platforms, but there are many other options depending on the complexity and capabilities needed for your site.
• Make sure your website is optimized for mobile devices. According to the latest research, 58% of all website traffic comes from mobile devices and 75% of Google's searches take place on mobile.
• Hire a professional web designer to ensure your website looks modern and functions properly on all devices.
• Integrate social media accounts and create content that is optimized for each platform.
• Be sure to include a blog section as well as contact information on your website.
• Make sure your website is secure by using an SSL certificate to encrypt data and use of HTTPS protocol.

Creating an online presence is an essential step towards launching your groundnut oil business and ensuring customer loyalty. By following the aforementioned tips, you will be able to create an online presence that is optimized for success.

Secure The Necessary Financing For Operating Capital And Production Expenses.

Starting a groundnut oil business, or any business for that matter, requires a significant amount of capital to cover both operational expenses and production costs. It is important to have financing strategies in place to secure the necessary start-up funds and ensure that you have access to the capital you need when the time comes.

Below are a few tips and tricks to consider when securing the necessary financing for your groundnut oil business:

• Create a comprehensive business plan with detailed financials. A strong business plan is critical to successfully obtaining financing as it provides financial institutions and potential investors with a clear understanding of the potential return on their investment.
• Reach out to local banks, credit unions, and other financial institutions to evaluate loan options and other financing packages. Tapping into existing capital is the most affordable and simplest way to secure the necessary funds.
• Leverage social media and crowd-funding campaigns to raise awareness of your brand and secure additional capital. Utilizing these platforms is an effective way to increase visibility and generate additional support.
• Connect with potential investors who have experience in the groundnut oil industry or are already invested in other similar businesses. It is essential to form relationships with those who have industry knowledge and may be willing to provide financial backing.

By following the tips and tricks above, you can increase your chances of securing the financing necessary to launch your groundnut oil business. Ultimately, having a well thought out financial plan and good relationships with potential lenders and investors will give you the best chance for success.

Draft An Operational Plan That Takes Into Consideration Operational Costs And Operational Scaling.

Drafting an operational plan for a groundnut oil business is a critical step in the start-up process. It is essential that business owners create a plan that not only considers operational costs associated with production, but also the scalability of the business. These tips and tricks will help you create an effective operational plan:

• Create an accurate budget that accounts for current operating costs and anticipated future costs. Consider potential increase in pricing, costs of raw materials, production expenses, and other associated costs that may arise.
• Develop a comprehensive plan for scaling the business. Research strategies for increasing production capacity, meeting customer demands, and developing new products or services.
• Establish a timeline for implementing the operational plan and outline the associated costs.
• Determine key performance indicators that will help track success against the established timeline.
• Identify any potential risks associated with the operational plan and develop strategies to mitigate such risks.
• Seek advice from industry experts to gain valuable insight and enhance the operational plan.

Following these tips and tricks will help business owners create an effective operational plan that is both cost-effective and attainable.

Ensure Safety Standards, Hygiene Measures, and Other Regulations Are Followed

When launching a groundnut oil business, it is essential to adhere to the safety standards and hygiene measures set by the regulatory authorities. Here are some tips and tricks to ensure that the business is compliant with all relevant regulations.

• Familiarize yourself with all relevant health, safety, and hygiene regulations that may apply to your business. Consult with experts if necessary.
• Ensure that all workers are properly trained to carry out safety and hygiene protocols.
• Introduce uniform safety clothing for all workers in the factory.
• Conduct regular safety and hygiene inspections to identify potential problems and address them promptly.
• Install safety measures such as fire extinguishers, emergency exits, and protective gear.
• Ensure that all products are labelled properly to meet customer requirements.
• Start a tracking system to monitor and ensure compliance with the regulations.
• Develop safety and hygiene protocols that are easy to follow and regularly update them as per industry best practices.

Implement Quality Control Measures To Guarantee Customer Satisfaction

Quality control measures are critical for guaranteeing customer satisfaction and gaining brand loyalty. Implementing quality control procedures must cover raw materials and the finished product, as well as the production process as a whole. Follow these tips to ensure high-quality groundnut oil every time.

• Develop quality standards and objectives that are in line with global standards and your operational goals.
• Train all staff members on the proper techniques and procedures used in the quality control process.
• Regularly inspect raw materials delivered from suppliers to ensure they meet quality standards.
• Conduct frequent sampling and testing during production for chemical, physical, & microbiological criteria.
• Adopt a system of batch-specific controls to ensure each batch of oil meets the specifications.
• Reject batches which do not meet the quality criteria and re-test them for accuracy.
• Ensure that any contaminated batches are disposed of safely and in accordance with regulations.
• Document all quality inspection results and maintain them for future reference.
• Periodically monitor customer feedback and use those insights to make improvements in the process.

Implementing a comprehensive quality control process is essential to providing customers with high-quality groundnut oil, which will result in brand loyalty and ongoing support. Taking the time and effort to ensuring quality, as well as adequately training staff and documenting every step, will go a long way in guaranteeing customer satisfaction.

Opening, starting or launching a successful groundnut oil business utilizes a range of skills from business planning to marketing and finance. It's a challenging process that requires mindful planning and preparation, but it can be done. By laying the groundwork and following the important steps we outlined above, entrepreneurs can bring their dream to life and join the many successful businesses that are currently popping up in the groundnut oil industry.

Thanks to modern production techniques and new advances, there is a real and ever-growing demand for groundnut oil, and entrepreneurs across the world can take advantage of this to launch a successful business and help meet the global demand for this important commodity.

Related Blogs

• KPI Metrics
• Running Expenses
• Startup Costs
• Pitch Deck Example
• Increasing Profitability
• Sales Strategy
• Rising Capital
• Valuing a Business
• Writing Business Plan
• Buy a Business
• How Much Makes
• Sell a Business
• Business Idea
• How To Avoid Mistakes

Leave a comment

Your email address will not be published. Required fields are marked *

Please note, comments must be approved before they are published

Business Plan

Groundnut Oil Production Business Plan in Nigeria

by BusinessPlan Leave a Comment

Groundnut oil is essential to so many foods in Nigeria and other parts of the world. Considering the high demand for this product, it means that you can make a huge income from it. You can produce vegetable oil from several seeds such as soybeans, sesame seeds, cottonseed, and groundnut.

In this post, we will focus more on producing oil from groundnut as it is the most famous way in Nigeria. The beauty of this process is that you can also get other products from this process such as groundnut cake.

Read: Palm Kernel Oil Production Business Plan

Have you been searching for a way to invest in the groundnut oil business in Nigeria? You just picked the right article. We will show you how as well as provide you a sample business plan to help you out.

Sample Business Plan on Groundnut Oil Production in Nigeria

We put together this plan after a lot of research. It can be used to apply for grants and loans as well as to run your business. Since it is a sample business plan, this is only an abridged version. If you need to full version, you can reach out to us and get it for a small fee.

Now let’s get to the sample business plan for groundnut oil business in Nigeria.

Business Name: Gee Nut Oil Nigeria

Location: Kogi State

Industry: Agricultural and Food Processing

Gee Nut Oil Nigeria is a new company focusing on the production and processing of groundnut oil. The company has a farm where it cultivates its groundnut. From here it facilitates the processing, sales, and distribution of affordable but high-quality groundnut oil and other related products.

These products are basic groundnut oil derivatives as well as groundnut cake. All of these are targeted at meeting the groundnut oil needs in the Middle Belt Region of Nigeria. Gee Nut Oil Nigeria has its facility located in Lokoja, Kogi State, Nigeria.

Company Vision

Gee Nut Oil Nigeria desires to be ranked among the biggest producers of groundnut oil and its derivatives within the first five years of operation.

Company Mission

Our mission is to provide our target audience the best products on the market at affordable prices. We seek to provide very healthy products and top-notch customer services to satisfy every customer. This will lead to us gaining their trust and recycling patronage. We also seek to produce within a safe and healthy environment meeting up to required industry standards.

Business Objectives

To ensure that we achieve our business mission and vision, we have set specific objectives in place. We believe that achieving these objectives will be instrumental in becoming one of the biggest groundnut oil companies in Nigeria. Our business objectives include:

• Raise our company revenue to above N30,000,000 after the first 2 years of production.
• Ensure that profit margins stabilize around 20% to 25% within the first two years. To achieve this, we believe we need to pay a lot of attention to production expenses.
• Drive brand awareness as well as generate sales by taking advantage of the different social media channels.

Keys to success

Every company needs to establish a clear path to achieving their goals. This clear path is known as “keys to success.” After lots of research, we have come up with these keys to success to ensure that we achieve our objectives.

• Attain financial stability through the sales of our products.
• Ensure that we lower operating costs as much as possible while maintaining the quality of our products.
• Recruitment of an efficient team that is highly motivated and ready to attain new heights.
• Ensure that our production facility is hygienic and safe for the manufacture of healthy products.
• Acquire the necessary licenses to ensure unhindered production.
• Consistency in offering high-quality processed products.
• Faster processing duration and offering outstanding customer service to our customers.

Products and Services

Gee Nut Oil Nigeria will be focused on the processing, sale, and distribution of groundnut oil products and derivatives. Along with this, we will offer our equipment for hire to other businesses interested in groundnut oil production. Finally, we will offer consultancy services to other businesses and customers as well as training programs in groundnut oil production.

Competition Analysis

Several huge companies are invested in the Nigerian groundnut oil industry. This means that the competition is very huge for Gee Nut Oil Nigeria. As a startup company, we have carried out a lot of research and we understand exactly what it takes to seize the market.

We will be able to knock off the competition and gain more patronage if we can:

• Build a strong marketing team that can push the boundaries and helps the brand attain recognition.
• Leverage on our hygienic production processes and customer service.
• Provide top-quality products at very affordable prices.

Financial Considerations

To start up Gee Nut Oil Nigeria, we need a sum of about N10 million. We hope to get this via long-term financing. This sum will cover start-up costs, building expenses, purchase of equipment, and working/running capital. We intend to raise this amount from partners and a loan from the bank.

We forecast that around the tenth month of operation, this business will attain a positive cash flow. This achievement will make it possible to expedite the repayment of the loan.

Please note that this is only a sample business plan which is why it is abridged. If you need the full business plan, reach out to us and we will make it available at a subsidized price.

Get your Groundnut Oil Production Business Plan in Nigeria  and feasibility study. pay N10,000 to:

Bank Name: Guaranty Trust Bank (GTB)

Account Name:  Chibuzor Tochi Onyemenam

Account Number: 0044056891

After payment, send your name, email address and tittle of business plan (e.g. feasibility study on groundnut oil production in Nigeria) to  07033378184

How to Start a Groundnut Oil Production Business in Nigeria

The first thing you should remember is that currently, there is a ban on the importation of groundnut oil in Nigeria. This means that investing in this sector could become a money-spinner for you. Groundnut oil production is hugely lucrative if you can sap the juices.

There are specific steps to help you start and run a successful groundnut oil business in Nigeria. Let’s show you some of them below.

Learn the trade

Starting this business, or any business at all, without learning the trade could be disastrous. The groundnut oil business requires a level of expertise that comes from studying hard. Find out about the desired market quality, how groundnuts are planted, reaped, and processed.

Learn about the process of extracting oil from groundnuts and the use of the other derivatives. The best way to learn this is from an existing producer. During your time as an apprentice, you will be exposed to the production processes that will help you build your business.

Feasibility study and Business Plan

After learning the trade, take the time to study the industry and carry out a detailed feasibility study. This will help you discover the pitfalls and challenges in the industry. It will also show you what is more in demand and what your competitors are doing.

Use this information to write a business plan that will help you run the business. Many business owners neglect writing a business plan which is why most of them fail. Asides running your business, a business plan is also instrumental in helping you raise funds for your business.

Register your business

If you are going to be considered a serious business, then you must register. In Nigeria, this registration is done under the Corporate Affairs Commission (CAC). Follow through by registering with all the other necessary agencies like NAFDAC and SON.

This registration gives your product certain credibility and helps you gain the trust of potential customers. It also helps you avert unnecessary embarrassments in the future.

Choose a location

When choosing your business location, there are several things to put into consideration. One of these is the proximity of the location to the source of raw materials. Another is accessibility to the market and customers.

It is also important to find a production location that is equipped to avoid polluting the immediate environment. Polluting the environment might lead to sanctions and affect the reputation of your brand. Remember that even though it is a production facility, you also need space to meet with customers.

Acquire funding

Without funds, no business can work. The groundnut oil business needs quite an amount of capital to start. There are several ways to raise funds for your business including personal savings, loans, and gifts. Your business plan should give you a clear picture of how much you need to start your business.

Market your business

This is a very important step because if you get everything else right and miss this step, there’s still no profit. There are several ways of marketing your products. Find the most affordable yet productive methods. Examples include:

• Social media and digital marketing.
• Billboards and flyers.
• Print media.

The profitability of the business

How much profit you make depends on your production levels and how efficient your marketing processes are. It is possible to make up to N13 million or more in a month from this business. How?

Let’s say you produce 3.5 tons of oil daily. Your production costs for a month are likely to fall around N800,000.

One ton of groundnut oil costs N200,000, this means that 3.5 tons will cost N700,000.

This amounts to N14,000,000 if you sell for 22 days in a month. After taking out your cost of production, you should have up to N13.2 million. Although, these costs are based on several market indices.

In this post, we have shown you how to start your groundnut oil business in Nigeria. You have also seen our sample business plan. If you will like the full business plan, reach out to us and we will make it available at a subsidized cost.

Groundnut Oil Production Business Plan in Nigeria © www.businessplan.com.ng

Share this:

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Notify me of follow-up comments by email.

Notify me of new posts by email.