Groundnut Oil Mill Project Report



If you want to start a groundnut oil business you will require groundnut oil mill project report to know each and every detail about this business and to plan about your investment knowing the positive and negative details about this project.

The groundnut is popular as peanut. It is from febacrae family. It tastes mild. People use its oil as vegetable oil. It is a light yellow coloured transparent edible oil that has clear color, pleasant fragrance and better taste than normal refined oils. It is an oil that customers find easy to digest.

The groundnut has more than 80% unsaturated fat. It also has 19.9% of stearic acid, arachidic, and palmitic acid too. This composition makes it really good edible oil. This makes it easily digestible and absorb. The raw material for groundnut oil is the leaves on which groundnuts seeds grow. The businessmen in the business of groundnut oil processing use groundnuts for oil.

Groundnut Oil Mill Project Report

The groundnut oil is used in cooking, including frying, basting, and preparing margarine and shortenings. If we talk about its properties, The source of oil is groundnuts or peanuts, which are famous worldwide, and this oil is used for cooking and is also used as a shortening or as a base for confectioneries. Also, peanut butter formation is done using these peanuts. The kernels of groundnut contain 45 to 55% of oil, and this oil produced from kernels is yellowish to greenish-yellow in colour. This is also used to feed poultry and cattle. Groundnut oil can be extracted using various methods, and it depends on the oil also. Peanut oil is an organic material oil whose aroma and taste are of its parent legume.

Groundnut Oil Extraction

Groundnut oil extraction uses a different solvent like hexane, while aromatic oils are produced using various methods like steam distillation and cold pressing. This means the goal of extraction is to make pure oil free from contaminants and traces of the original plant.


After China, India is the second-largest country to produce groundnuts, and this is the largest oilseed in India in terms of production. In 2007-08 around 35.99 percent of the oilseed production and generally 2.5 kg of groundnut used to produce 1 liter of groundnut.

How to Download Project Report of Groundnut Oil Mill 


It is effortless to download the Project Report of Groundnut Oil Mill in PDF format. Include the project report of groundnut oil mill in the basket. After that, you have to make payment by checkout. You can download the report in PDF format immediately after payment.

Peanut Producing states in India

In India, major peanut-producing states are south Indian states like Gujarat, Andhra Pradesh, Karnataka, Tamil Nadu, and Maharashtra, and the rest produce on less scale-like states Madhya Pradesh, Rajasthan, Uttar Pradesh, and Punjab. Groundnut is grown over an area of 6.9 million hectares with a total production of 5.3 million tonnes.

Groundnut Oil Market Potential

The demand for groundnut oil is directly proportional to income and population. This oil ranks on the top among edible oils export from India, a popular source of food throughout the world. This is a superior oil with high cost in the market, available in refined and filtered forms, and nutritionally high in quality.
The current data shows that around 75 countries import groundnut oil from India in huge quantities, and the total export value is approximately 64 million in US dollars.

License or Registration For Groundnut Oil Mill Production

Some permissions are required when you start production and sell your product in the market. Following licenses:

These are the common license and certifications required, and check with your local DIC authority about any other formalities.

How To Arrange Finance For Groundnut Oil Processing Plant

Like any other industrial business, this industry also required two types of cost factors. One is fixed capital, and the second is working capital. Also, you can contact NABARD for a refinancing facility. Term loans or mortgage loans come under your fixed capitals, and for working capital, you need cash credit or the overdraft facility with some nearby bank or any financial institution. Since it is a business that requires a lot of finance, you can approach bank for Mudra Loan or apply online for PMEGP loan subsidy scheme

Groundnut Oil Mill Production Plant Setup & Machinery  

For factory, operation chooses the right location means don’t go for home setup in this case and select area where required utilities like water and electricity are available. Transport facilities and labor are also available. In your premises, keep the area for raw material storage, finish product, production unit, administrative workspace, storeroom for oil cakes, and space for miscellaneous items is available.

Machinery For Groundnut Oil Mill Processing

  • 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
  • An automatic pouch filling and sealing machine is required for pouch packaging purposes.
Raw Material For Manufacturing Peanut Oil

The most important raw material for peanut oil is groundnut seed which is procured from the local market, and this seed gives 44.5 to 50% oil, 50-55% meal. The remaining raw materials for Groundnut oil production are caustic soda, bleaching earth, and packaging consumables.

What is the use of groundnut oil mill procesing project report?

The major benefit of the groundnut oil mill project report is to provide information to the potential new entrepreneur. The project report covers essential aspects of the Groundnut oil manufacturing business.

Process of Groundnut oil production

Harvesting of groundnuts to pure edible oil production is a complex process and involves steps are groundnuts pre-processing, pre-pressing, solvent extraction, crude peanut oil refining.

Before groundnut going to the expelling are pre-processed, kernels are clean, shelled, cracked and cooked by a special processing machine and then prepared groundnut are transported to processing workshop where raw material first expelled by screw oil press machine however this a high residual oil rate process, therefore, a chemical method that is solvent extraction is good to extract complete oil from seeds. The solvent extraction method gives below 1 % residual rate of the groundnut meal, and therefore, for the edible purpose, the pressed crude groundnut oil needs to be refined by filter press or oil refining plant.

Groundnut Oil Extraction Process 

The Groundnut solvent extraction may be a procedure during which oil is extracted from oil-bearing materials by treating it with a coffee boiler solvent to extract the oils by mechanical pressing methods that are expellers, hydraulic presses, etc. and residual oil left in the oil cake is from 6% to 14%. Most of the oils recover in the solvent extraction process, and 0.5% to 0.7% residual within the staple left.

Firstly husk removes from the kernels by decorticated and now obtain groundnut that has 48% oil content, and then they go for mechanical extraction process that is screw presses. The resultant cake has residual content changeable from 8 to 12 %, counting on pressing of kernels. The pre-pressed cakes now go for solvent extraction for recovery of the residual oil.

Equipment for Groundnut oil Extraction 

Following equipment are used for oil extraction:

  • 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
Benefit of Groundnut Oil
  • Calestrol is controlled by consuming groundnut oil in food.
  • Peanuts contain sterol, white germ phenol and vitamin E that are useful for humans.
  • Regular consumption of groundnut oil. Can present the wrinkling of skin.
  • It also helps to prevent thrombosis, artery diseases and vessel walls.
  • It is also useful to increase human memory and increase brain functioning.
  • Thus peanut has so many benefits and is sold in abundance in the market. If you start groundnut oil processing business in India you will earn tons of profit.
Groundnut oil Extraction Process

This process ensures the nutrition value, flavour, safety, and fragrance of peanut oil. The different stages in the oil extraction process are cleaning, shelling, grading, crushing, rolling, steaming or cooking, pressing, filtering, and refining described below:


Cleaning means inspection of the seeds carefully to remove stones, sand, dirt, and spoilt seeds. Also, you can use the dry screening method to remove all material that is over or undersized. Washing can be used but generally avoid as the plant tissue will have to be dried at a later stage.

Always select fresh, full-grained, undamaged, and freed from insects kernel and haven’t undergone an aging period groundnut seeds. Remove the immature, damaged, and molded grains. Equipment used in this process is self-regulation vibrating sieve, magnetic separator, cleaning sieve, etc.


Shelling means removing 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 is the Groundnut shelling machine.


Grading means separate the small groundnut and large groundnut for different treatments, and the equipment used in this process is Groundnut Kernel Grading Machine.


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

Rolling or grinding Of Groundnut Oil

After crushing, Groundnuts are rolled through the instantaneous extrusion force between the two rollers to make the embryo slice. The form of the groundnut is modified, shortened the oil path, which is beneficial to the groundnut oil extraction. The seed isn’t generally pressed whole since oil extraction is more efficient if the seed is in smaller particles. Grinding means the process of reducing the particle size. Also, you’ll 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 urge flakes for oil extraction. Many large-scale commercial plants find this mainly an effective approach. Additionally, with large oilseeds, it is often necessary to grind the seed first, then put the pieces through the flaking rollers. The equipment used for this process is going to be Peanut Rolling Machine.

Steaming or cooking

This procedure is to manage the moisture of the peanut embryo slice by changing the temperature to develop the oil extraction rate and confirm the ultimate peanut oil features a strong aroma. The equipment used for this process is going to be Five-layer Vertical Steam Cooker, Electrical Cooker.


Then, for extraction of oil, steamed or cooked peanut embryo slices are pressed by a peanut oil press machine. The screw peanut oil machine confirms the first cell structure of the groundnut is destroyed with the assistance of mechanical force to urge pressed petroleum.

During processing, press the conditioned oil seeds or oil-bearing material employing a lever press, press, or a mechanical expeller to get rid of the oil.

Groundnut oil pressing methods

Dividing into the temperature pressing system, there are two sorts of groundnut oil pressing methods in the market known as hot pressing technology and cold pressing technology.

The hot pressing method is that the traditional process of groundnut oil. With a high rate of oil output, peanut oil is firstly steamed, fried, and then pressed at a temperature beyond 120°C. But due to the high production temperature, the peanut protein is usually severely denatured and loses an excellent number of nutrients.

The cold pressing method refers to the boring technology which is conducted at a temperature under 60°C. Before pressing method, normally uses the tactic of removing the red skin, which is beneficial to the reserve of nutrients and thus the great utilization of peanut protein in groundnut oil.


Edible filter machines can remove some organic impurities in the crude groundnut oil or other types of filter machines easily.


The crude groundnut oil or peanut oil that’s filtered by the filter machine is pure and clean. But it still contains several oil-soluble and oil-soluble impurities. It is essential to equip the groundnut oil production plant with professional edible petroleum refinery equipment to acquire them off and acquire refined, high-quality groundnut oil.

Generally, the value of a peanut oil extraction machine will be approximately Rs 2.50 Lakh/Piece.

Content Of Groundnut Oil mill Processing Plant Project Report

The following topics have been highlighted in the groundnut oil mill project report.

Sr. No.Contents
1Project at Glance
3Objective, Promoters Management & Background
4Market Demand Potential
5Location of Project
6Business Process
7Means of Finance
9Revenue Model
10Mfg. Process Chart
11Planning for Human Resources
12Expenses Details
13Fixed Assets Details
14Plant & Machinery Details
15Debt – Service Coverage Ratio
16Projected Profitability Statement
17Projected Balance Sheet
18Projected Cash Flow Statement
19Statement of Depreciation
20Term Loan Repayment Schedule
21Ratio Analysis
22Break – Even Analysis
Which other business is more profitable to do with Groundnut Oil Mill?

Along with manufacturing groundnut oil, the company will benefit you by manufacturing peanut butter, soybean oil and mustard oil. You can read our articles for detailed information about these businesses.

Frequently asked questions on Groundnut Oil processing business plan in India

Is the groundnut oil business profitable in upcoming years?

Yes, this is a profitable business at present and in upcoming years as groundnut oil is one of the leading commercial products in different countries like China, India, Nigeria, Myanmar, Sudan, and Senegal today, and of course, it is less capital intensive than other forms of groundnut produce. Edible oil is extracted from groundnuts kernel, and due to its various nutrition and health benefits, this is demanding oil. This oil helps reduce cholesterol, prevents heart disease, and is also used to reduce appetite in the form of help in weight loss. This oil is sometimes directly applied to the skin due to scalp and other skin disorders.

How to start marketing for Peanut oil business?

There are different ways by which you can do marketing for your product. Firstly you can offer a buy 1 get one promo offer, and secondly, you can participate in cooking exposure shows where you can share your groundnut oil samples with different people. Thirdly, you can create online blogs, post your articles related to health benefits, and share links for online purchasing of oil. Fourthly, you can make small videos related to health benefits and share on Facebook, Youtube and share purchase links also for your e-commerce.

How To process groundnut oil?

There is a complete process to manufacture groundnut oil from groundnut seeds. You can read it out in detail in groundnut oil business plan on our website.

Is groundnut oil production profitable?

Yes, manufacturing groundnut edible oil is profitable because people are more health conscious these days and they like to consume less fatty oil.

Can I download groundnut oil report and use it for bank loan under pmegp mudra and other government scheme?

You can download peanut oil production business plan and create one for your self according to your needs. Later you will be able to apply for mudra loan and PMEGP subsidy loan scheme and get financial help from government. Our project report will act as a blueprint to assist you.

Can I download groundnut oil project report in the format of excel or word file?

Project Reports on our website are readily available for download in PDF file format. If required, with the help of online conversion tools that are free to use, you can change the pdf file in excel and word file.

How is groundnut oil processing Project report sample pdf helpful?

Well, when you download a sample project report for peanut business plan you will be able to write a fresh and accurate project report for bank loan.

Can I get groundnut oil Sample project report for bank loan pdf?

Yes, you can easily get the sample project report of groundnut oil processing from our website if you planning to set up peanut oil processing plant in India. You can use groundnut oil business plan sample for writing your own project report.


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