Groundnut oil production is financially a profitable venture with huge export potential. Groundnut oil processing manufacturing operation can be initiated as small and medium scale basis according to the desired output and project cost. Initiating a groundnut oil production business requires feasibility study preparation, procurement and installation of machines in the appropriate accommodation, recruitment of personnel and project commercial take-off. One metric ton of groundnut seed produces an average of 420 LTR of groundnut oil, 420Kg of groundnut cake, and 40Kg of groundnut sludge.

GROUNDNUT OIL PRODUCTION MARKET POTENTIAL
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 they can be used to make peanut butter. Groundnut oil ranks at the top among edible oils exported. 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.

GROUNDNUT OIL PRODUCTION LICENSE & REGISTRATION
In establishing a groundnut oil production unit, you will need to obtain several different license and registration from different Government authority.

Company Registration
Trade License
Factory License
Food Operator License
‘No Objection’ from Pollution Control Board
Fire License
However, under the scheme of labeling of environment-friendly products, the presence of antioxidants within a prescribed limit is a requirement as per notification of the Ministry of Environment and Forests. These are the common license and certification requirement. Check with your local authority about any other required formalities.

FINANCE FOR GROUNDNUT OIL PRODUCTION UNIT
Alike any manufacturing industry groundnut oil production business also involves two types of cost factors. One is fixed capital and another one is working capital. For fixed capital, you will need to apply term loan or mortgage loan. For working capital requirement, you can go for cash credit or the over draft facility with your nearby bank or any financial institution.

Groundnut Oil Production Unit Setup & Machinery
Selecting a right location for factory operation is an important aspect. Major required utilities are water and electricity. Easy availability of transport facility and labour is important. Create a floor plan indicating specific space for raw material storage, finished products storage, production unit area, administrative work space, store room for oil cakes and space for miscellaneous usage. Generally, 0.50 acre of nonagricultural land is recommended for establishing an improved groundnut oil expelling unit having an installed processing capacity of 240 MT /annum. The land should be with proper elevation.

Machinery required 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, then automatic pouch filling and sealing machine are required............................................
Source: https://www.wealth-ideas.com/groundnut-oil-production-business-small-scale-manufacturing/

chrischukstony:
Groundnut oil production is financially a profitable venture with huge export potential. Groundnut oil processing manufacturing operation can be initiated as small and medium scale basis according to the desired output and project cost. Initiating a groundnut oil production business requires feasibility study preparation, procurement and installation of machines in the appropriate accommodation, recruitment of personnel and project commercial take-off. One metric ton of groundnut seed produces an average of 420 LTR of groundnut oil, 420Kg of groundnut cake, and 40Kg of groundnut sludge.

GROUNDNUT OIL PRODUCTION MARKET POTENTIAL
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 they can be used to make peanut butter. Groundnut oil ranks at the top among edible oils exported. 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.

GROUNDNUT OIL PRODUCTION LICENSE & REGISTRATION
In establishing a groundnut oil production unit, you will need to obtain several different license and registration from different Government authority.

Company Registration
Trade License
Factory License
Food Operator License
‘No Objection’ from Pollution Control Board
Fire License
However, under the scheme of labeling of environment-friendly products, the presence of antioxidants within a prescribed limit is a requirement as per notification of the Ministry of Environment and Forests. These are the common license and certification requirement. Check with your local authority about any other required formalities.

FINANCE FOR GROUNDNUT OIL PRODUCTION UNIT
Alike any manufacturing industry groundnut oil production business also involves two types of cost factors. One is fixed capital and another one is working capital. For fixed capital, you will need to apply term loan or mortgage loan. For working capital requirement, you can go for cash credit or the over draft facility with your nearby bank or any financial institution.

Groundnut Oil Production Unit Setup & Machinery
Selecting a right location for factory operation is an important aspect. Major required utilities are water and electricity. Easy availability of transport facility and labour is important. Create a floor plan indicating specific space for raw material storage, finished products storage, production unit area, administrative work space, store room for oil cakes and space for miscellaneous usage. Generally, 0.50 acre of nonagricultural land is recommended for establishing an improved groundnut oil expelling unit having an installed processing capacity of 240 MT /annum. The land should be with proper elevation.

Machinery required 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, then automatic pouch filling and sealing machine are required............................................
Source: https://www.wealth-ideas.com/groundnut-oil-production-business-small-scale-manufacturing/

Nice post and very informative..


But


On the average how much capital would one need to begin this venture?

Depends, Small, medium or large scale?

Nwanne Madu
Please which is more viable, groundnut, pko or soybeans processing
Am still saving up and observing all three lucrative processing sector
Your thread and blog are really insightful
It shows you have read and understand "Rich Dad Poor Dad"

Theophinio:
Nwanne Madu Please which is more viable, groundnut, pko or soybeans processing Am still saving up and observing all three lucrative processing sector Your thread and blog are really insightful It shows you have read and understand "Rich Dad Poor Dad"

I have same question in mind