Corn Oil Project Report, Making Business Plan

Corn Oil Project Report, Business Plan


Hello friends, today we are here with a new topic called ” Corn Oil Project Report, and Business Plan” Corn oil is produced as an end product of maize product industries. In wet-milling factories starch and its product, dextrose dextrin, corn syrup, etc. are the principal items, whereas gluten feeds and corn oil are the chief byproducts. Corn products that exclusively include the endosperm without dividing the starch from gluten are called cornmeal. In its pearl meal etc. is made using dry milling. In Dry milling, the corn oil will not be generated as a by-product based upon the capacity of the plant.

The fat content of corn will not be altered significantly by the change of the open-pollinated varieties to the hybrid varieties which now give practically the whole of the commercial supply of corn need for mining. Usually, the corn contains around 3.9% fat which is related to 4.6 percent on a moisture-free basis. A recent study of 159 samples showcasing 17 hybrid varieties marks the percentage of 5.7% and a minimum of 3.6%. Individual varieties reported the level as high as 5.2% and as low as 3.9%.

The fat of corn kernel is concentrated chiefly in germ. A study of pollinated corn depicted that the grain comprises 11.5% germ, 81.1% endosperm, and 7.4% bran that has 1.15%, 34.8%, and 0.80% of either extractable material. The average oil content of specific fractions is 0.8, 34.5 and 1.0% of the whole oil around 84% available in germ and left will be in the endosperm.

Uses and application of Corn Oil

It is used in salad preparation and margarine. After refining some varieties attain a high degree of superiority and maintain good quality properties like taste small and thus used in cake and biscuit making and even used for greasing of baking pans etc. The amount of refined vegetable maize oil extracted in the country is less and the quality does not match with superiority of the product.

The corn oil plant is one of the famous oil plants having applications across the world. Through various processes, qualified corn oil is acquired.  Corn oil in actual terms is corn germ oil. Corn germ oil is assessed to include life-essential fatty acids with some mild taste. It is also a rich source of Vitamin E. Similar to various other edible oils, this oil is also used for culinary purposes when it comes to f stewing, frying, and roasting. Not only for cooking, but Corn germ oil also finds its application in biodiesel.

A Guide to Corn Oil Project Report, and Manufacturing Business Plan

Corn Oil Business Plan
Corn Oil Business Plan (Pic credit: pixabay)

Market potential of Corn Oil Making Business

The Indian economy continues to sustain in its robust growth line, a journey which started in 2003-04. The country’s actual GDP grew by 7.5-8.5% during 2003 and 2005: augmented substantially to around 9.0% in 2005-06, and reported a record of 9.4% in 2006-07. This makes India stand as the Globe’s fastest-growing momentous economies.

We expect the growth statistics to maintain as such in the current fiscal, with real GDP set to the clock and inspiring growth several factors make us believe that the India growth story will unfold to blaze the globe for years. The continuation of robust growth in HP in the current fiscal despite a higher customer base, growing consumer demand portrayed by sustained growth in earnings of corporate India, good agricultural development forecasts, the continued flow of fresh capital funds, despite interest rate perks like hikes, are some significant aspects factors.

Business plan for starting Corn Oil Production Plant in India

For starting a small-scale Corn Oil Manufacturing Business in India, you need to first draft a perfect business plan by considering the following points:

  • Basis and presumptions of the project
  • Implementation schedule
  • List of licenses required
  • Raw materials required
  • List of machinery and equipment for extracting Corn Oil
  • Manufacturing process of Corn Oil
  • Project economics of Corn Oil Manufacturing Business

Basis and presumptions of Corn Oil Manufacturing Business

a. The corn oil plant can be operated in three shifts. About 8 hours daily day and 300 working days for a year.

b. The interest rate for the business will be 12% per annum on the investment borrowed. 

c. The expenses regarding acquiring licenses, raw materials, packing materials, machinery and considered based on the scalability of the project profile that differs from place to place.

d. The rental expenses of the production shed and land are considered as per the prevailing rates and may differ from place to place.

e. The unit capacity utilization could be around 75% since the unit is operated continuously.

f. Recovery of oil from the corn seeds is around 16 – 20% as per the process involved.

Implementation schedule of Corn Oil Manufacturing Business

The project execution will need around nine to ten months. The estimated break-up of activities and the duration for each activity are stated below:

  • Project preparation and permissions: 0 – 2nd month
  • Registration under MSME Act 2006 and loan sanction: 2nd – 4th month
  • Machinery and equipment purchase and installation: 4th – 5th month
  • PFA License: 5th – 7th month
  • Power connection setup: 5th – 7th month
  • Machinery installation: 7th – 8th month
  • Recruiting staff and test run: 8th – 9th month
  • Commercial production can be presumed to begin: 10th month

List of licenses required to start Corn Oil Manufacturing Business in India

First step is to acquire the below list of licenses, permissions and registrations for starting Corn Oil Manufacturing Business in India-

  • MSME registration
  • GST registration
  • ROC
  • Registration of firm
  • Shop Act License
  • FSSAI License
  • IEC Code
  • Export License
  • Fire and Safety
  • ESI
  • PF
  • No Objection Certificate from pollution board
  • Trade license from local municipal authority

Raw materials required for starting Corn Oil Manufacturing Business

In case if you miss this: Ideas To Make Money In India.

Maize/Corn (image credit: pixabay)

The raw material for the corn oil is the maize grains sourced from the corn fields. Generally, it is grown in the countries like India, America, and Columbus, etc. Its name in European countries is corn to separate it from the other cereals. It majorly mainly bran, germ, and endosperm.

List of machinery required for starting Corn Oil Manufacturing Business

There are lots of machines but for setting up a small-scale unit you can go for fully automatic corn oil processing machine, which is also available online. It ranges from Rs. 15,000 to Rs. 4,50,000. But if you opt for semi-automatic corn oil processing machine then it ranges from Rs. 14,000 – Rs. 2,00,000. Manual machines are also available which ranges from Rs. 13,000 – Rs. 1,65,000.

Manufacturing process of Corn Oil

Corn oil processing is one of the most famous seed processes in oil mill units. The seed processing unit can be modified particularly as a corn oil plant, sunflower oil plant, or peanut oil plant, etc. With the use of the appropriate oil extraction machinery, corn can be transformed into useful products like corn oil, corn meals, etc.

Corn oil processing usually comprises the cracking of corn grain and about 3% to 30% by weight of the oil is extracted as corn oil from the cracked corn grain. The corn oil helps prepare nutritionally improved edible oil for cooking purposes, biodiesel, lubricants, fuel, cosmetics, and oil-based chemical items. The extracted cornmeal is even employed in animal corn oil processing feed, fermented broth additives, etc.

Crude corn oil will be sent for filtration and then degummed. In steam degumming, steam is fed at a volume of not more than 3 % of the oil and is absorbed by lecithin or other gums, to make them heavy so that they can be separated by centrifugation. In alkali degumming, a heated NaOH solution is employed to absorb the gums and also to counterbalance any free fatty acids, followed by “washing” the oil with hot water to avoid any soap molecules generated in this step. By-products derived here in the alkali process are sold like soap stock.

Corn oil is “bleached” using clay that has been “activated” using an acid wash to avoid any metals native to the clay. Therefore, the clay captivates color pigments, leftover soap products, and metal ions in the corn oil. The clay is then separated from the oil using filtration. If a partially hydrogenated item like margarine or shortening, is being produced during the process, the heated oil will get exposed to the hydrogen gas under pressure. The oil is refrigerated to crystallize waxes if any, which are later separated by filtration. A continuous steam treatment deodorizes the oil using a distillation column, carrying any leftover impurities out the top of the tower with the rising steam because the finished oil is separated from the bottom.

Corn Oil Manufacturing Project Report/ Economics of Corn Oil Manufacturing in India

Corn Oil Project Report – Land and building: Rs. 10,000

Corn Oil Project Report – Machinery and equipment: Rs.1,50,000

Corn Oil Project Report – Raw material (per month):

  • Corns: Rs. 2,50,000
  • Packaging Material: Rs. 3,000
  • Total: Rs. 2,53,000

Corn Oil Project Report – Staff & labour (per month): Rs. 23,400.

Corn Oil Project Report – Other expenses (per month):

  • Rent of Land & Building: Rs. 10,000
  • Electricity Charges: Rs. 5,000
  • Fuel Exp.: Rs. 4,000
  • Advertisement and Travelling: Rs. 2,000
  • Transport: Rs. 4,000
  • Consumable & stores etc.: Rs. 1,000
  • Potage expenses/ telephones: Rs. 1,000
  • Stationery: Rs. 1,000
  • Repairs & Maintenance’s: Rs. 2,000
  • Total: Rs. 30,000

Corn Oil Project Report – Working capital (for one month):

  • Raw material: Rs. 2,53,000
  • Salaries & Wages: Rs. 23,400
  • Other Expenses: Rs. 30,000
  • Total: Rs. 3,06,400

Corn Oil Project Report – Total capital investment

  • Machinery & Equipment: Rs. 1,50,000
  • Working capital for one month: Rs. 3,06,400
  • Total: Rs. 4,71,400

Corn Oil Project ReportCost of production (per annum)

  • Total recurring cost per year: Rs. 36,76,800
  • Depreciation on machinery & equipment: Rs. 16,500
  • Interest on total investment @ 10%: Rs. 47,000
  • Total: Rs. 37,40,300

Corn Oil Project Report – Sales proceeds (per annum)

  • Corn Oil – 45000 Kg: Rs. 42,75,000
  • Total: Rs. 42,75,000

Corn Oil Project Report – Profitability (before income tax)

  • Annual Gross Profit: Rs. 5,34,700
  • % of Profit on Sales: 12.51%
  • Break Even Analysis
  • Annual Sales: Rs. 42,75,000
  • Annual Variable Cost: Rs. 30,36,000

Corn Oil Project Report – Break Even Point calculation

Break-Even Analysis = Annual fixed cost X 100 / Annual sales – Annual variable costs = 51.72%.


  1. Respected Sir,Vanakkam.
    Hearty Thanks…to your Greatest Services to the New Entrepreneurs…
    We salute you and idea3makemoney
    We are senior citizens…
    God bless you, your family and your team…
    We should thank To God…

  2. We are interested in the project mentioned above and we want to know that are there any agencies or person who set up these type of plants in working conditions for us or we have to set up on our own. So kindly let us know for the same.

    And kindly contact us on the E-Mail mentioned above.


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