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. 

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
  • Cyclones
  • Dust Blower
  • Bucket elevator
  • Roller crusher
  • Screw conveyor
  • Screw press
  • Holding tank
  • Filter press
  • Pumps
  • Bleacher
  • Vacuum pump
  • Neutralizer
  • Condenser
  • Water treatment Set
  • Deodorizer
  • Boiler

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


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. 

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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!

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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

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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. 

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