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.

Soybean Oil Mill Project Report

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.

Soyabean oil mill project report is a necessary document that will help you get all the necessary licenses, help you set up this factory and avail financial assistance from the banks. You can use it as a map that has all the solutions to your doubts and can resolve your problems in a gist of time.

How to Download Soybean Oil Project Report?

Gone are the days of waiting at the door of the expert, as a result, you can now get your soyabean oil making start up sample report in hand, by instantly downloading the report in pdf document format.

First Step            –   Click add to basket  >>  Check Out  >>  Payment

Second Step       –  Immediately after successful payment, you will get a link to download the report. You can download the report immediately from this link.

How To Produce Soybean Oil?

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.

Business Opportunities Related To Soybean Business In India

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.

How Much Time Is Needed To Set Up Soybean Oil Manufacturing Business In India?

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.

Documents Needed To Start Soy Bean Oil Production

The general requirement for obtaining licenses, permissions and registrations are mentioned below. These are the same registrations that you might require if you start ground nut oil extraction business also. It is also a profitable business idea for anyone to start. Groundnut oil project report contains every detail about this business prospect. 

  • 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 Needed To Produce Soybean Oil In India

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

Business Registration Required For Soyabean Oil Business

Registering the business with appropriate government agencies is regarded as the first step while starting any business.

  • FSSAI registration: Any food business operator that is carrying out business of manufacturing, processing, distributing, storing and sale of food or its products must mandatorily have FSSAI Registration/License made. Vegetable oil processing businesses require FSSAI registration/license.
  • Environmental clearance: The production businesses of Soybean oil require environmental clearance. This clearance is issued by the State Pollution Control Board.
  • Trade license: The local municipal authority issues trade license to run oil manufacturing businesses.
  • GST registration: GST registration is an important step for businesses that are having annual turnover of more than Rs. 40 lakhs.
  • Factory license: The Factory Inspectorate issues a factory license that is required to run businesses.

Ideal Location For Soyabean Oil Manufacturing Plant In India

The location of your soybean oil factory is the most important. A location which is close to soybean production places and soybean oil selling markets would be ideal. This is considered as an ideal location as it can save transportation costs. Also, you can select places where you can get labor at economical costs.

Loans Needed To Start Soybean Oil Extraction Plant In India

  • Pradhan Mantri Mudra Yojana (PMMY): This scheme provides loans up to Rs. 10 lakh to micro and small enterprises.
  • MSME Business Loans for Start-ups in 59 Minutes: This scheme provides loans up to Rs. 5 crore to MSMEs in just 59 minutes.

Soybean Oil Plant Setup And Machinery Needed

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. You can also start mustard oil extraction plant project if you have more space available and wish to make much more money since the target market is same. Some necessary machinery list is also given below:

Soybean Oil Extraction Plant Set Up Details

  • 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. A few of the soybean oil extraction processes may be same for sunflower oil extraction plant so you can start these two ventures under one roof only as your staff is skilled enough to start extracting sunflower oil as well. Therefore, you can explore sunflower oil manufacturing project report and grab more information about this business as well.

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 For selling soybean oil in india

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. 

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. If i talk about profits involved in the extraction of rice bran oil then you will be glad to know that the profits are high in this venture as well. You can henceforth start rice bran extraction oil mill and make huge money. 

Key Points Covered in soybean oil business plan
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
For whom is soybean oil mill plant Project report pdf format useful?
  1. CA Chartered Accountants
  2. Tax Consultants
  3. Small Business Owners
  4. Students
  5. Engineers
  6. Who wants to self-study

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

Sample format of soybean oil processing plant Project Report pdf

In our project report format, we cover technology details, its diagrams, flow charts etc. as and when required or deemed fit to include. Also, we can help you prepare in-depth financial calculations which are necessary for the Investor/bank.

You will get the report data from our Project Report in PDF format. You can also modify the information according to your need. You will be able to access the data easily according to your requirement. 

Frequently Asked Questions On soybean mini oil mill Project Report
Is soybean oil manufacturing business profitable in India?

Yes, soya bean oil manufacturing in India is profitable but the profit earned can depend on a number of factors. The value of raw material, machinery and labour are some of the key factors that account for the overall profit in soya bean oil business. This oil is made with a low oil content crop so the raw material is required in a large quantity. So sourcing good quality raw materials will reduce the crop wastage.

How to start soyabean oil extraction business in India?

Research the Market: - Conducting market research to understand the demand for the soybean oil is the key step. - Then you should identify the brands that are your competitors. 2. Business Plan: - Developing a comprehensive business plan outlining your target market, marketing strategies, financial projections as well as operational plan can be of great use. - Include details on sourcing soybeans, production capacity, estimated costs, pricing, and distribution channels. 3. Legal and Regulatory Requirements: - Register your business and obtain necessary licenses and permits, including food processing licenses and GST registration. - Ensure compliance with food safety standards and quality control norms. 4. Financing: - Determine your initial capital requirements for setting up the manufacturing facility, purchasing machinery and equipment, and covering operational expenses. - Explore funding options like self-financing, bank loans, or investors. 5. Location and Infrastructure: - Find a suitable location for your manufacturing plant, considering proximity to soybean suppliers and transportation facilities. - Set up the necessary infrastructure, including production area, storage facilities, packaging area, and quality control lab. 6. Equipment and Production Process: - Procure the required machinery and equipment for oil extraction and refining. - Hire skilled personnel or provide training to operate the machinery. - Implement the production process, including cleaning, drying, extraction, refining, packaging, and labeling. 7. Sourcing Soybeans: - Establish partnerships with soybean farmers, traders, or wholesalers to ensure a consistent supply of high-quality soybeans. - Negotiate purchasing agreements and maintain a robust supply chain. 8. Quality Control and Packaging: - Implement stringent quality control measures at various stages of the production process to ensure the production of high-quality soybean oil. - Invest in attractive packaging to enhance market appeal. 9. Marketing and Distribution: - Develop a marketing strategy to promote your soybean oil, including branding, advertising, and product differentiation. 10. Continuous Improvement and Expansion: - Monitor market trends and consumer preferences to adapt your product offerings. - Explore opportunities for expanding production capacity or entering new markets.

How is soybean oil made?

Below are the steps involved in soyabean oil manufacturing, 1. Cleaning: The soybeans are thoroughly cleaned to remove any impurities, such as dust, stones, or other foreign matter. 2. Preparation: The cleaned soybeans are then heated and cracked to break them into smaller pieces. This step helps to increase the efficiency of the oil extraction process. 3. Conditioning: The cracked soybeans are conditioned to adjust their moisture content and temperature. This conditioning step helps in improving the oil extraction efficiency. 4. Extraction: The conditioned soybeans are passed through an oil extractor, typically a screw press or solvent extraction unit. In the screw press method, mechanical pressure is applied to the soybeans to squeeze out the oil. In the solvent extraction method, a solvent like hexane is used to dissolve the oil from the soybeans. The oil is then separated from the solvent through evaporation. 5. Refining: The extracted crude soybean oil is refined to remove impurities and improve its quality. This process generally involves degumming, neutralization, bleaching, and deodorization stages. Degumming removes phospholipids, neutralization removes free fatty acids, bleaching removes pigments and impurities, and deodorization removes any unpleasant odors or flavors. 6. Packaging: After refining, the soybean oil is filtered and packaged in suitable containers, such as bottles or drums, to ensure proper storage and distribution.

What is Soyabean oil?

Soybean oil, also known as soya bean oil. It is a kind of vegetable oil derived from the seeds of the soybean plant that is also known as Glycine max. It is one of the most widely consumed cooking oils and is also used in various industrial applications. Soybean oil is obtained through a process called oil extraction. The seeds of the soybean plant are cleaned to remove any impurities and then undergo a series of steps to produce the oil. The cleaned soybeans are typically heated and cracked to break them into smaller pieces, which improves the efficiency of the oil extraction process. The cracked soybeans are then conditioned by adjusting their moisture content and temperature. Soybean oil is known for its mild flavor, high smoke point, and versatility in cooking and baking. It is also commonly used in the food industry for various applications such as frying, baking, salad dressings, margarine production, and as an ingredient in processed foods.

What is the Cost of setting up soyabean oil manufacturing unit?

The cost of setting up a soybean oil manufacturing unit can vary depending on various factors such as scale, location, technology, and machinery chosen. Here are some key cost considerations: 1. Land and Building: The cost of acquiring suitable land and constructing or renovating a building to house the manufacturing unit. This cost depends on the location and size of the facility. 2. Machinery and Equipment: This includes the cost of machinery and equipment required for various processes such as cleaning, cracking, conditioning, extraction, refining, and packaging. The prices of these machines can vary based on their capacities and quality. 3. Utilities: The cost of utilities such as electricity, water supply, heating, ventilation, and air conditioning (HVAC) systems needed for running the manufacturing unit. 4. Licensing and Permits: The expenses associated with obtaining necessary licenses, permits, and certifications from relevant government authorities for establishing and operating a soybean oil manufacturing unit. 5. Raw Materials: The cost of sourcing soybeans as the main raw material for oil extraction. This cost can vary depending on the market prices and availability of soybeans. 6. Labor: The cost of hiring skilled and unskilled labor for various production processes, including supervision, operation, maintenance, and packaging.7. Packaging and Marketing: The cost of packaging materials, labels, branding, and marketing expenses to promote and sell the soybean oil manufactured. 8. Research and Development: Investment in research and development activities to optimize processes, enhance product quality, and meet regulatory requirements.

How to grow soyabean oil manufacturing business in India?

Growing a soybean manufacturing business in India involves several key strategies and considerations. Here are some steps you can take to expand and develop your soybean business: 1. Market Research: Conduct thorough market research to understand the demand and trends for soybean products in India. Identify potential target markets, consumer preferences, and competition. This will help you make informed decisions and tailor your strategies accordingly. 2. Product Diversification: Explore opportunities to diversify your soybean product range. Apart from soybean oil, consider expanding into value-added products such as soy protein, soy flour, soy milk, or soy-based snacks. This can help you tap into different market segments and increase your product offering. 3. Quality Focus: Emphasize the quality and consistency of your products. Invest in quality control measures, certifications, and adhere to food safety standards to ensure customer satisfaction and build a strong reputation in the market. 4. Supply Chain Management: Develop a robust supply chain system to ensure a steady supply of high-quality soybeans for your manufacturing unit. Build relationships with reliable soybean farmers, traders, and suppliers to secure a consistent and cost-effective supply. 5. Process Optimization: Continuously seek ways to optimize your manufacturing processes to improve efficiency, reduce costs, and enhance product quality. Invest in modern machinery, automation, and efficient production techniques to increase productivity. 6. Distribution Network: Expand and strengthen your distribution network to reach a wider customer base. Establish partnerships with distributors, wholesalers, and retailers across different regions of India. Consider e-commerce platforms and online sales channels to reach a larger consumer audience.

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