Groundnut Cold Pressed Oil Production Profit

Introduction to Profit in Groundnut Cold Pressed Oil

Groundnut oil production is an economically profitable business with great export potential. Also, you can start the groundnut oil processing operations as a small or medium-scale basis depending on the desired output and project budget.

A Step By Step Guide to Profit in Groundnut Cold Pressed Oil Business

Initiating a groundnut oil production business needs feasibility study preparation, procurement, and purchase of machines in the appropriate setup, recruitment of staff, and project commercial take-off. One metric ton of groundnut seed provides 420 LTR of groundnut oil on an average, 420Kg of groundnut cake, and about 40Kg of groundnut sludge.

Market Potential of Cold Pressed Groundnut Oil Production 

Groundnuts are a great source of food across the world. Groundnut oil is used for cooking purposes and as a shortening or as a base for several confectioneries and they can be employed to make peanut butter. Groundnut oil ranks stand as top among edible oils exported from India. It is a premium oil and its price is more. Most other edible oils are having less cost compared to the groundnut oil. Groundnut oil is obtainable in the market is refined and filtered forms. Although filtered oils are nutritionally higher in quality.

The size of the global groundnut oil market is around 188,000 MT, during FY2013. Additionally, India exports about 16,500 MT of groundnut. With liberal export policies and a good domestic crop, exports are expected to exceed 25,000 MT in FY 2015.

License, Permission, and Registration for Groundnut Cold Pressed Oil Production

In establishing a groundnut oil production unit, you must obtain various license and registration approvals from different government authorities.

• Company registration with ROC
• Trade license
• SSI registration
• Factory license
• Food operator license 
• BIS certification
• ‘No Objection’ from the pollution control board
• AGMARK certification
• Fire license

The Food Standards and Safety Rules, 2011, and rules made under IS 544: 1968 permit additions of antioxidants in groundnut oil for a higher shelf life of the oil. However, under the scheme of labeling of environment-friendly products, the occurrence of antioxidants in a prescribed limit is a requirement as per notification of the Ministry of Environment and Forests. These are the common license and certification necessities. Verify the same with your local DIC authority about any other necessary formalities.

Finance for Groundnut Oil Production Unit

Similar to any manufacturing industry groundnut oil production business involves two kinds of cost factors. The first is fixed capital and next one is working capital. A refinance scheme facility is there with NABARD. For fixed capital, you must apply for a term loan or any mortgage loan. For working capital requirement, you may opt for cash credit or the overdraft facility with your close bank or any financial institution.

Groundnut Oil Production Unit Setup and Machinery  

Choosing the proper location for factory operation is a very necessary aspect. The main requirements are water and electricity. The proper availability of transport facilities and labor is necessary. Prepare a floor plan showing specific space allocation for raw material storage, production unit area, finished product storage, administrative workspace, the storeroom for oil cakes, and space for some other usage.

Generally, you will just require 0.50 acres of non-agricultural land for beginning an improved groundnut oil expelling unit. Here, you can set up a plant with a processing capacity of 240 MT /annum. 

The machinery required as follows:

The groundnut oil press is a new type of Screw Oil Press Machine which makes use of the pressing rings or pressing bars to extract the oil out from groundnut seeds. Compared to various groundnut oil presses in the market, screw groundnut oil pressers can get groundnut materials constantly, which can improve the total oil yield. In addition to that, the oil extracted by our groundnut oil machine is of high quality, with bright color, and is with great fragrance. Our groundnut oil press machine is stable with strong capacity, and the performance is also very effective. Mainly, it is cheap compared to the type of oil production machinery but will deliver the same groundnut oil production output.

Groundnut Oil Cold Press Machine – Hydraulic Oil Press

Hydraulic oil press extracts oil from oilseeds using the hydraulic principle. The whole oil extraction process can be done easily. If you compared the screw oil press machine, the hydraulic groundnut oil press machine is expensive. The hydraulic oil press is also popular as a groundnut oil cold press machine.

Steps Involved in Extracting the Cold Pressed Oil from Groundnut Seeds

Below are basic things that can be seen in the extraction of groundnut oil through the cold press method. The extraction process of groundnut oil is can be noted in the following segment. 

Cleaning

The prepared groundnut oil seeds are placed on magnets to remove dirt and undesirable trace metal before de-hulled and sent through the particular cleaning machine to separate other foreign matters.

De-hulling

Groundnut seeds contain about 20%-30% hulls from the oil-type. Those hulls are occasionally separated before oil extraction to make sure the quality of both oil and Groundnut meal is sustained. When the seed contains moisture of 5% after cleaning, then de-hulling is done. The basic procedure here includes cracking the seeds by the mechanical action of a centrifugal or pneumatic sheller that is also done carried out by abrasion. Then the resulting mixture is winnowed to separate the hulls from the kernels.

Grinding

The prepared groundnut oil seeds are placed over magnets to eliminate the dirt and trace metal before de-hulled. To have a larger surface area for the step of pressing, the de-hulled seeds are grounded into a coarse meal that has uniformity by mechanized grooved rollers or hammer mills. Then the meal is heated to pace up the oil extraction step.

Pressing

During the oil pressing, some waste and impurities are also released with the oil, and they should be eliminated before the oil is packaged so that is can be edible. The heated metal is then fed slowly into a screw press, which increases the pressure continued as the meal passes through a slotted barrel. Pressure gradually increases from 68,950 to 206,850 kilopascals as the oil is screwed out through the slots in the barrel, and is then collected.

Extracting additional oil with solvents

After the initial oil is gathered back from the screw press, the oil cake leftover in the press can be refined by the help of solvent extraction to get more yield. A volatile hydrocarbon (the famous as hexane) dissolves the oil out of the oil cake, and then the oil is harvested by distilling the solvent out, and then the solvent is passed from the matter to be collected at the bottom. 

Removing solvent traces

90% of the solvent present in the extracted oil easily evaporates and it is collected for reuse. The remaining solvent is harvested by the use of the stripping column. The oil is heated through steam, and the lighter solvent floats at the top, when it condenses, it is collected later.

Refining the groundnut oil

Refining of oil is done for removal of odor, color, and bitterness. First, the oil is heated on temperatures starting from 40°C and 85°C. Then soap forms from the unwanted fatty acids and the alkaline additive, and generally, it is removed by a centrifugal process. The oils are degummed by careful treatment with hot water at temperatures between 85°C and 95°C or by the help of acidified water. This precipitates the main portion of the gums which are mostly the phosphatides. Then centrifugation is done which removes the dregs.

Groundnut Oil Manufacturing Cost

The cost of starting a groundnut seed oil factory is chiefly associated with factors such as oil mill capacity, process design, equipment selection, factory layout, automation degree of the production line. A major portion of the startup capital is needed for leasing or obtaining a facility as well as for buying oilseed oil extracting and processing equipment. It is also predicted to use the capital on the purchase and servicing of distribution trucks, salaries of your staff, and charges associated with utility bills.

Investment for Manufacturing Cold-pressed Groundnut Oil 

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You can extract the oil from seeds with the use of below equipment and cost to start:

• The automatic cold-pressed oil machine will be about 1.5 lakh to 2.5 lakhs 

• Screw expeller will cost about Rs. 25,000 to Rs. 50,000

• Cooker and filter press are available at Rs. 60,000 to Rs. 80,000

• Storage tank for oil will sum up to Rs. 50,000

• If you want a sealing machine in the packaging of the oil packets it can be obtained at Rs. 3 lakh

• Employee’s salary and bills will sum up to Rs. 1 lakh to Rs. 1.5 lakh

• Empty tins and bottles are procured at Rs. 10,000

• The charges for taxes, license, and registration process will be around Rs. 1lakh

• Marketing expenses will be about Rs. 50,000

• Any other miscellaneous expenses will be dealt with in Rs. 30,000

If your oil plant is not set up in your land then the start-up investment will also be included for rental charges that too as per the size of the plant. So, the total investment for starting a cold-pressed groundnut oil plant is about Rs. 5 lakhs to Rs. 7 lakhs based on the size of the plant.

Profit in Groundnut Cold-pressed Oil Making Business

You can obtain good profits in the cold-pressed groundnut oil making business. You can have about 35 to 40% of profits in the cold-pressed oil making business. If you take 1 kg of groundnut seeds you will obtain 450 ml of oil. The seed-cake obtained after getting the oil is also having demand in the market because of its nutrients. So, the seed-cake is mainly used as a fodder. The oil is collected in a storage tank and next is examined, if it’s found pure then and is approved in all the conditions, then the oil is forwarded to the packing stage for packing and distribution. When the oilseeds are processed the waste which gets accumulated is known as pressed cakes. Oil cakes mainly have little oil in them thus can be used as animal feed by processing through distillation.

Marketing Strategies for Promoting your Groundnut Cold-pressed Oil

You could try selling your cold-pressed groundnut oil in local markets or you may sell online. You can also register in some of the popular B2B websites and B2C websites and use online markets to advertise cold-pressed oil products. 

You can also sell your products in small stores, supermarkets, in shopping malls, etc. Promotion about your product through social media is very necessary to have a huge number of clients in this way you can grow and promote your business. There are very limited cold-pressed groundnut oil manufacturers in India, but the great requirement for it will be encouraging the new product is also high as the product is having several properties. So, you must not worry about the market. One can sell his product as cold-pressed groundnut oil wholesale price in India.

In case if you are interested in the commercial Groundnut Farming.