Soybean Oil Manufacturing Project Report



Here Project Reports of Soybean Oil Manufacturing are available for download in PDF format. There is a nominal fee for report download. The purpose of the project report on soybean oil manufacturing is to provide information to the potential entrepreneur. The project report covers all aspects of the manufacturing process and business.

This report will help you prepare a project report as per your objectives. This report will also help study the project and gather information about the project.

Soybean oil is vegetable edible cooking oil used globally. It is produced from soybean seeds, and in this article, we explain how to start a soybean oil production business with all major requirements.

When you start this type of business, the location is the most important criterion and always establishes your production unit near the soybean growing areas so that you spend less on transportation and ensure the soy seeds supply at your unit without any hassle and take less time. Some countries that produce soybean seeds on a large scale are Uruguay, Bolivia, Ukraine, Canada, India, China, and India is the second-largest producer of soybeans seed in Asia.

In India, some major soybean-producing states are Maharashtra, Madhya Pradesh, Rajasthan, Andhra Pradesh, Karnataka, and Gujarat, and according to statistical data, India accounts for 3.95% of global Production.

How to Download Soybean Oil Project Report

There is a nominal fee for the project report of soybean oil manufacturing. You can download the report in PDF format immediately after paying the fee.

Production Methods

In commercial Production, two methods are available for producing soybean oil, either by pressing or solvent extraction method. One more method available is called the screw pressing method, which is a mechanical process, and also it is a complicated method, and oil yield is also much lower than earlier methods. While on the other side, if we compare chemical processes, then solvent extraction, which is a chemical process, ensures higher oil yield and therefore, it is strongly recommended to go with this process.

Furthermore, soybean oil production starts in two ways. One is for only oil production in which you have to send oil to other refinery companies, and this type of business start with moderate capital investment and another route is to start the oil unit along with a refinery setup although this type of business demands substantial capital investment and operates on a large scale.

Market potential of Soybean Oil Manufacturing Business

This is the popular healthiest cooking oil as it contains omega-3 fatty acids, polyunsaturated fats, and low saturated fats. These days, this is the second-largest edible oil after palm oil consumed throughout the world, with the US and China having the largest markets. Globally, its demand comes from the food industry side and within the food industry, its major requirement in cooking and as a condiment in salads.

Side by side, this oil demands in industrial paints, lubricants, solvents, cleaners, adhesives, oleo-chemicals, biodiesel, bio-composites, etc. and due to its high unsaturated fat content, this oil undergoes early oxidation when exposes to air, light, or moisture and this property make it suitable for printing inks and oil paint formulations.

In the coming 5 years, industry experts assume that soybean oil demand will grow at a CAGR of around 4%.

Soybean oil is in great demand due to the high cost of other edible oils like Sunflower oil, Mustard oil, etc., compared to soybean oil. For the preparation of margarine and shortenings, refined and partially hydrogenated Soybean oil is considered. In India, the Vidarbha region of Maharashtra having huge cultivation of soybean crops and therefore, many refineries purchase solvent extracted Soybean oil for refining it. In this area, huge raw material present and customers number is also high and based on cost this project achieves high market potential.

Time required for Soybean Oil Manufacturing Business setup

This project implementation takes around nine to ten months. The estimated period for each activity are stated below:

  • Project preparation time 0 – 2 months.
  • MSME Udyam registration and loan sanction time required 2 – 5 months.
  • Machines Purchase and acquiring time taken 4 – 5 months.
  • PFA License 5 – 7 months.
  • Requesting power connection 5 – 7 months.
  • Machinery Installation 7 – 8 months.
  • Staff required & running time 8 – 9 months.
  • Commercial Production can be started from the last and tenth month onwards.

Legal aspects required for starting Soya Bean Oil Production

The general requirement for obtaining licenses, permissions and registrations are mentioned below:

  • Land and Plant Layout.
  • If the land was taken on rent, then ownership proof or consent letter.
  • If any partnership, then, partnership dead copy and list of partners
  • List of directors  and MOA in case of company.
  • Apply for MSME Udyam online registration.
  • Submit Application for the commercial electricity & water supply.
  • Apply for the Factory License.
  • Additionally, apply for the FSSAI license.
  • Photocopy of the packing material specimen.
  • NOC from State Pollution Control Board.
  • Check any tax liabilities or GST of the business.

Raw materials procurement

The primary requirement in this is soybean seeds, and other materials are hexane and other necessary chemicals. Also, obtain packaging material for bulk packaging.

Plant setup and machinery required.

The primary need is the land for setting production units. If your land is available to start manufacturing works, then it is best.

For plant setup primary need is the land, and it is very good if you have your land for production setup; otherwise, you can take land in an industrial area on lease. Generally, a 2000 sq. ft area is sufficient for a small-scale unit setup. Some necessary machinery list is also given below:

Solvent extraction plant – Boiler. A solvent extraction plant comprises
  • Elevators
  • Seed Cleaner
  • Aspiration system
  • Cracker
  • Cooker
  • Flaker
  • Roll Grinding attachment
  • Hydraulic system
  • Conveyors
  • Rotary Air Lock
  • Feed Bin
  • Micro-Level Indicators
  • Extractor
  • Rising Hoppers
  • Discharge Bin
  • Bulk Flow Conveyor
  • Rotary Air Lock
  • Toaster
  • Dust Catcher
  • Oil Stripping Column
  • Horizontal Tubular Condenser
  • Water Solvent Separator
  • Spent Water Desolventiser
  • Evaporator
  • Final Vapour Absorber
  • Final Vertical Stripper
  • Separator
  • Pre-Heater
  • Condensers
  • Heater
  • Sealing Devic
  • Vapour Cooler
  • Dryer
  • Oil Holding Tank
  • Vacuum Equipment
  • Heat Exchangers

Soybean Oil extraction process 

The Solvent Extraction Method is used to produce soybean oil. The solvent is diffused into the oil-bearing cells of the seeds in this process, resulting in a solution that contains both the solvent and the oil. The entire procedure is broken down into three key parts, as listed below.

a. Preparatory Section:

When the material’s oil-bearing cell comes into contact with a solvent, it gets extracted properly. The solvent has a better chance of penetrating cells if the substance is tiny. As a result, determining the optimal size is critical for effective extraction. To achieve this, soybean seeds are cracked, cooked, and flaked before being fed through expanders.

b. Main Extraction:

Several solvent sprayers spray the solvent on a whole bed of raw material in this step of the extraction process. The length and width are designed to enable enough time for close contact penetration and solvent percolation into seeds. Finally, the material exits the spraying chamber is deoiled and desolventised, allowing the solvent to be collected. Miscella is the obtained mixture of oil and solvent passed to the miscella tank and then to the desolventiser.


The solvent within the extracted substance has an affinity to keep it alive. Thus it must be eliminated. The weight of the material removed is retained in a range of 20 per cent to 35 per cent. The general concept of de-solventisation is to heat the material with steam to a temperature higher than the solvent’s boiling point, ensuring that no solvent is left behind. Solvent vapours are sent through a scrubber, which washes the solvent used to track the vapours. Following that, a conveyor will transfer the deoiled and desolventised food to the bagging section. A cooling system is installed to ensure that the material is properly cooled so that bagging is simple and the moisture content is between 10 and 12 per cent.


In most cases, the Miscella (oil and solvent mixture created in the extractor) has 12 to 18 per cent oil in the solvent. While the oil is heated to a high temperature, distillation is done in three steps under a vacuum to avoid oxygen. The Economizer performs the first evaporation and reduces the solvent in the first and second cycles, leaving just oil. This oil is treated with steam once more to verify that no solvent remains in the oil.

The solvent vapours created here are sent via an oil-vapour separator, which removes any soil particles that may have been caught with the solvent vapours before being condensed in the condenser for solvent recovery.

Target Market

This is the oil used for many purposes. Therefore, so many customers are available, and that’s why soybean oil does not have particular customers or particular age range or gender. It is used by anyone, which is why you can partner your business with food and grocery stores. This oil and its by-products can be sold to customers like Grocery stores, Food chains, Restaurants and hotels, Industries, Livestock farmers etc. 

Key Points Cover in Project Report on Soybean Oil 

Project Report Table of Contents

2Market Potential
3Industrial Scenerio
4 Product Description
5Uses Of Soybean Oil
6Raw Material Required For Soybean Oil
7Manufacturing Process
8Process Of Oil Extraction
9Refining Process
10Oil Extraction Process Flow Chart
11Refining Process Flow Chart
12Indian Standards
13Land/ Civil Work
14Plant And Machinery With Images
15Power Requirement
16Manpower Requirement
17Other Utilities

Apart from this, all the information is being provided. To help in preparing project reports.

What are the Profits in Soybean Processing Business?

In this business, smart profits can earn around 35-40 per cent after deducting all expenses from the capital amount. This means the leftover part is your profit, and you have to more concentrate on capital to reduce this and earn more profits. And for this, one can purchase old equipment also and reduce fixed capital investment.

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For whom are these formats useful?

  1. CA Chartered Accountants
  2. Tax Consultants
  3. Small Business Owners
  4. Students
  5. Engineers

In addition to those who want to prepare project reports themselves.

What are the business ideas one can follow using soybean seeds?

These are the most profitable soybean processing business ideas:

Soya Chunk:

The most popular consumer food items are soya chunks or nuggets, which are fermented, and the product is also known as soybean meat. Soy flours are used to make soya nuggets. The protein in the flour undergoes structural changes and creates a fibre-like network throughout this process.

The production procedure is straightforward. Furthermore, the business demands minimal infrastructure and machinery. You can even start a soya chunk manufacturing business from your home.

Soy Milk:

Soy milk is a high-protein, low-fat, low-carbohydrate beverage with no cholesterol, and it is a fantastic snack for newborns, children, the elderly, pregnant and breastfeeding women. As a result, the demand for this healthy meal is rapidly expanding. With a modest financial investment, you can establish a soy milk manufacturing firm. Flavoured soy milk is also very popular.

Soy Sauce:

Soy sauce is made from fermented soybeans and is often used as a flavour enhancer. It has a typical bitter-sour and sweet flavour as well as a typical bitter-sour and sweet taste. Indians use soy sauce in a variety of Chinese, Thai, and Indian dishes.

Making soy sauce is straightforward, and one can start a business with a small amount of money. Soy flour, salt, baking soda, vinegar, preservatives, and other key raw components are required.

Soy Flour:

Protein is abundant in soybeans, and this is the basic form of soy protein, soy flour. There is a noticeable movement towards soy goods, particularly soy flour, as health awareness grows. Its use as a wheat flour additive is becoming increasingly popular in many families.

Soy flour is made in a straightforward manner. However, the soybean flour processing unit can be started concurrently with the soybean oil processing unit. Only top-quality soybeans are required as basic material.


Tofu is a sort of bean curd which is produced from soy milk. This is a low-calorie food that also contains a lot of protein. Soy milk processing is a good place to start when making tofu. You can only start a unit for tofu production if you don’t have any other options…The above-mentioned soybean processing business concepts are profitable ventures. However, in this line of work, location is crucial. You’ll need to locate the unit near soybean-growing areas. Because you’ll need to make sure that soybeans are readily available for your soybean processing plant.


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