Learn how to start a groundnut oil manufacturing business, how much machinery required, how can you make more profit, where to sell oil?

Learn how to start a groundnut oil manufacturing business, how much machinery required, how can you make more profit, where to sell oil?

January 13, 2023

In this business oil is extracted using various machinery like Mini Oil Expeller machine, Oil Filter Press machine, Groundnut decorticator machine, Baby boiler etc.. You can make a lot of money by selling these Groundnut oils

Now learn how to start a Groundnut oil business.

For this, first you have to survey the market, from where Groundnut can be found cheap, good quality and easily.

You can get Groundnut from the market, from the market yard and directly from the farmer. The better the quality of the peanuts, the better the oil will come out.

Now you are wondering where we should install this plant and how much space is needed to install it.

So you have to choose a place where raw material i.e. Groundnut can be easily found and the cost of transportation is less. If you are talking about space, you only need 400 square feet of space.

Now we see which machine is required to extract oil from Groundnut .

  1. First comes the Groundnut decorticator machine which is used to separate the husks and peanuts from the whole Groundnut.
  2. Then comes the baby boiler which used to heat peanuts or whole groundnut.
  3. Then comes the oil expeller machine which makes oil from groundnut on one side and other side oil cakes.
  4. Then comes the oil filter machine which filters the oil extracted by the oil expeller machine naturally and without any chemicals.
  5. Then comes the packing machine where you can pack one liter, two liter, five liter, fifteen liter and fifteen kg.

If you want to see the process of oil mill plant machinery, you can watch in the video below.


Now let’s talk about how much investment is required to start an oil mill?

You can start a peanut oil mill plant at five to ten lakh rupees.

You can call the number below to buy an oil mill plant.

Om Engineering works

Junagadh Highway Keshod-Gujarat – 362220

Mobile No. – +91 88660 30560  / +91 82000 63796

Now we know what licenses are required to set up an oil mill plant and where to register.

You have to register a company first to start this oil mill business, the advantage of registering a company is that you can easily get investment if you need investment to grow the business in future.

After that you need a food license, udhyog aadhar number, S.S.I. Registration (Small Scale Industry from DIC) License of Pollution Control Board etc. must be obtained.

The rest will have to take the PAN card, current account and GST number of the company.

If you want to take a loan to start this business, you can take it from Pradhan Mantri Rozgar Generation Program (i.e. PMEGP), Pradhan Mantri Mudra Loan Yojana and District Industry Center.

The government also gives you a subsidy to start this business, but your documents should be clear, for this the government gives you a subsidy of twenty to forty percent.

For information about the process of taking a loan from the PMEGP scheme, you can go to the following website link.

Now we know how much profit can be made by starting a peanut oil mill plant business.

Here we will talk about a three and a half ton groundnut plant that processes groundnut in twenty four hours

Here, let’s know about fixed costs which are fixed

  • Electric power: 14 HP = 11kw X 24 hours X 8₹ per unit = 2112₹.
  • Man power = 3persons X 3shifts X Rs.200 per day=Rs.1800₹.
  • 12% interest on loan of Rs.6 lakh = Rs.72,000 per year divided by 252 working days = Rs.285 per day.
  • Let’s calculate the additional daily cost 280₹.

If we total all this, it becomes 4477₹.

Raw material cost ( groundnut cost)

  • 3.5 tons in 24 hours X 55000₹ per ton = 1,92,500₹.
  • Oil output 32% of 3.5 tons = 75 tins each of 15kg. Oil X 2400₹ per tin = Rs.1,80,000₹.
  • Cake output = 42% of 3.5 tons 1470Kg cake X 25₹ per Kg.= 36,750₹.

Total cost  1,92,500₹ + 4,477₹ = 1,96,977₹

Total Income = 1,80,000₹ + 36,750₹ = 2,16,750₹.

Total Net Profit for 24 Hours: 


– 1,96,977


19,773₹ Net Profit.

This profit is 24 hours. If we calculate for 12 hours, we make a profit of 9,886₹ a day.


  1. If you get higher oil prices and oil cake prices, the profit will be higher.
  2. In the above calculation we have taken the estimated price which may be the change in price.
  3. These are approximate calculations. In fact, a liter of Groundnut oil sells for forty to two hundred rupees per litter and the price of Groundnut ranges from forty to seventy rupees.

If you work hard, then whatever you have invested, you will get a return in four to five months.

The oil mill plant should be such that the quality of the machine should be good, maintenance should be minimal and easy and the company from which you got the machine should have good service. If the service is not good then your product will not be produced and Your business will be at a loss.

If you want to start this business and for information about machinery you can contact Om Engineering Works. This company is known for machine quality, reasonable price and best service, you can contact them.

Oil mill plants are built according to many capacities in Om Engineering Works. For more information, a link to the website is included in the description, from there you can get all the information or you can call the given number directly.

Om engineering works

MD Nagar, Junagadh highway,

Keshod Gujarat- 362220

Mobile no : +91 88660 30560 / +91 82000 63796

Website: http://minioilmillmachine.com

The advantage of having Om Oil Mill Plant is reasonable price, excellent quality, best service and Om Oil Mill Plant requires only one crushing to extract oil from groundnut, no need to crush twice. Increase the production capacity of the plant. That is why two Expeller machines are needed.

This om oil mill plant can be used not only for groundnut, but also for extracting oil from many other oilseeds like mustard, sunflower, linseed, karanj, almonds, coconut, sesame, etc.

Now your question will be you have information about raw material, place, machinery, but the big question is where to sell oil?

The first major customer is your group circle. If we talk about the main market, khadi gram udyog,organic stores, grocery stores, restaurants, hotels, food processing plants etc.

If you export outside India, you can get more market and profit. And you can register on online platforms like Amazon, Flipkart, Tata Cliq and sell oil comfortably.

We hope you find some new information from this post, don’t forget to like and comment if you liked it.

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August 30, 2023

Groundnut oil processing devices are developed to extract oil from groundnuts. Cleaning machines, shelling machines, crushing machines, cooking machines, and pressing machines are examples of these machinery. The selection of machinery is determined by the plant's individual demands and requirements.

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June 26, 2023

With an increasing emphasis on healthy eating habits and a trend toward natural, organic goods, global demand for groundnut oil has increased in recent years. Groundnut oil production could be a lucrative prospect if you're wanting to build a profitable business.

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