Groundnut Oil Extraction Business is one of the leading business ideas due to the growing demand for healthy cooking oils. Groundnut oil has a high nutritional value and rich flavor. In this article, we will discuss the groundnut oil extraction business, the types of machines used, the production process, documentation, and the budget needed to start the business.
A. Different Types of Machines for Groundnut Oil Extraction Business
1. Wood-Based Cold Press Machine
- Capacity: Processes about 40 kg of seeds per day.
- Operation: Requires manual filling of the hopper.
- Time: It takes more time than other methods.
- Final Oil Temperature: Around 25-30°C.
- Output: The extracted oil can be used directly for packaging after filtration.
2. Cold Press Machine
- Capacity: Processes around 100 kg of seeds per day (with a 10 HP machine).
- Operation: Automatic system, requiring less manual interruption.
- Time: Faster than the wood-based cold press machine.
- Final Oil Temperature: Around 32-38°C.
- Output: The oil is ready for packaging after filtration.
3. Heat Press Machine (Expeller Machine)
- Capacity: Processes 800-2000 kg of seeds per day. (depends on machine capacity).
- Operation: Automatic system, but requires more space and investment.
- Time: The fastest among the three methods.
- Output: The oil is hot and cannot be used immediately for packaging.
Machines Required for the Heat Press Method (Expeller Machine)
For the heat press method, you will need the following equipment:
- Expeller Machine
- Vibrating Pre-Cleaner: Cleans the seeds by removing dirt and impurities.
- Seed Mashing Machine: Crushes the seeds to prepare them for extraction.
- Hot Air Dryer: Dries the seeds to the optimal moisture level.
- Boiler: Provides the necessary heat for the extraction process.
- Cooking Vessel: Cook the seeds before pressing to enhance oil yield.
- Oil Filter: Filters the extracted oil to remove any solid particles.
How the Expeller Machine Works
After pre-cleaning, the seeds are passed through a cavity where intense pressure and friction are used to extract the oil. The expeller machine applies high pressure to squeeze the oil out of the seeds. The oil is then passed through a filter machine to remove impurities and is ready for packaging after it cools down.
- Around 2-2.75 kg of groundnut seeds are required to produce 1 liter of pure organic oil. The by-products, oil cake, and waste husk, can be used for animal feed and crop mulching purposes.
B. Documentation required for oil business
- FSSAI Certificate: This is mandatory for any food-related business in India.
- Oil Testing Certificate: Ensures the quality and purity of your oil.
- Trade License: Required if you plan to sell your oil under a brand name.
- GST Certificate
C. We can study the profit calculation of 100 kg groundnut oil seed extraction from an expeller machine
Fixed Assets Investment
- Machinery: ₹4,00,000 to ₹10,00,000
- Licenses: ₹20,000
- Space (500 sq ft rent): ₹40,000
I. Expenditure for 100 kg groundnut seed processing
| Raw material | Manpower and electricity | Packaging bottles and labeling |
| 8000-8500 Rs per quintal | 1000 Rs | 500 Rs |
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II. Production quantity and selling price from 100 kg groundnut seed
| Rate of raw material | Oil | Selling price per lit oil | Cake | Cake price per kg |
| 8000 | 40-45 lit | 310 Rs | 60 kg | 30 RS |
- Groundnut oil= 40 lit x310 Rs= 12,400 Rs
- Groundnut cake= 60 kg x 30 Rs= 1,800 Rs
- Total income from 100 kg groundnut = 14,200 rs
Gross profit from 100 kg groundnut seeds= Revenue- Expenditure = 14,200-9500= 4,700 Rs
Note: Prices may fluctuate based on raw material availability and location.
You can check out the Project report of Groundnut oil.
D. Why Use Organic Groundnut Oil?
- Good for Health: It is rich in healthy fats and antioxidants, promoting overall well-being.
- Free from Adulteration: Unlike some commercial oils, organic groundnut oil is free from harmful additives like palm oil or mustard oil.
- Blood Pressure Control: It helps in regulating blood pressure levels.
- Reduces Bad Cholesterol: Regular consumption of groundnut oil can help lower bad cholesterol.
E. Why the Cold Press Method is better than the Heat Press expeller machine
- Preserve Natural Flavor and Aroma: Cold pressing retains the oil’s original flavor and aroma.
- Maintains Quality: Since no heat is applied during the cold press extraction method, the oil retains its nutritional value.
- Minimal Processing: After extraction, the oil is kept for 3-4 days to allow any solid particles to settle, after which it can be packaged.
F. Conclusion
Starting a groundnut oil extraction business can be highly profitable, especially with the right equipment and a solid understanding of the market. Choosing the right method—whether cold press or hot press—can significantly impact the quality of your product and, consequently, your business success
