Rice Bran Oil Manufacturing Project Report

Rice Bran Oil Manufacturing Project Report, and Business Plan


Hello friends, we are here today with a new topic called ” Rice Bran Oil Manufacturing Project Report and Business Plan”. Rice bran oil (also popular as rice bran extract) is obtained through extraction from the germ and inner husk of rice. A medically noteworthy constituent of rice bran oil is the antioxidant γ-oryzanol which was postulated in Japan as an effective agent in relieving hot flashes and other signs of menopause. Literature review indicates that rice bran oil and its active ingredients improve blood cholesterol by lowering total plasma cholesterol and triglycerides and enhancing the proportion of HDL cholesterol. Studies have established that even after heating at frying temperatures, the antioxidant stability in rice bran oil is maintained. The oxidative stability of rice bran oil was comparable to or even more than soybean, canola, corn, cottonseed, and safflower oil in a standard testing system that simulated deep frying temperatures. By weight, rice bran includes 17% oil content. After the refining process, the refined rice bran oil has only 12% of the rice bran raw material.

Rice oil, even known to be rice bran oil has been used majorly in Asian countries like Japan, China, Korea, Thailand, Taiwan, India, and Pakistan. It is the recommended oil in Japan for the lively flavor and odor.

Rice oil is a minor component of rough rice apart from carbohydrates and protein which are present in high quantities. Two major categories of lipids are seen. They are internal present inside the endosperm and those related to the bran. The internal lipids are meant for the functional, nutritional, and sensory properties of rice.

Rice bran is the major raw material for the extraction of rice bran oil. The majority of available bran is used as animal feeds without processing oil. The food industry does employ stabilized rice bran as a source of dietary fiber, and protein along with desirable oil.

Rice Bran Oil Manufacturing Project Report and Business Plan

Rice Bran Oil Manufacturing Project Report and Business Plan
Rice Bran Oil Manufacturing Project Report and Business Plan (Image source: pixabay)

Market potential of Rice Bran Oil Manufacturing Business

Rice bran is the rich and significant source of edible oil among unconventional sources. Rice bran is the brown coating present over white starchy rice kernel which is procured after dehusking paddy and after rice polishing. Even though rice bran technology has become famous in the country, only one-third is being used. India accounts for producing around 80 million tonnes of paddy every year. This will provide over 5 million tonnes of rice bran which will account for around 8 lakh tonnes of rice bran oil. In the year1983 – 84, the country consumed only 13 lakh tons rice bran, though the scope of the processing is about 32 lakh tons. The extraction of rice bran oil is presently estimated to be around 2 lakh tonnes and hardly 10-15 % of it is edible.

Around 70% of paddy cultivated in India is processed through huller millers and the rest is processed using modern sheller mills. This is the reason for the difference in the production and availability of oil.

The huller mills number are more in number ( 80,000) while there are only 28,000 modern sheller mills. Hence, the conversion of huller mills into modern sheller mills is a problem and is under process. If the present huller mills are modernized for rice bran processing then the gap will be reduced.

Uses of Rice Bran Oil

Rice bran oil is rich in saturated, MUFA (monounsaturated fatty acids), and PUFA (polyunsaturated fatty acids) and even it is advised for consumption by the WHO and the popular AHA (American Heart Association). It is also a fact that rice bran oil reduced the Low-density lipoprotein (cholesterol) level without decreasing High-Density Lipoprotein (HDL).

Business plan for establishing Rice Bran Oil Manufacturing Business

Crafting a business plan is most essential part for any kind of business.

  • Area, Location, and Site Improvement
  • Plant Design and Layout
  • Necessary Equipment
  • Raw Material needed
  • Packaging necessities
  • Transportation Facilities
  • Utility Requirements and its costs
  • Manpower needed and their salaries

Rice Bran Oil Production Unit capacity

The estimated yield of the plant is to manufacture 9000 MT/annum of crude Rice bran oil.

Land and building required for Rice Bran Oil

The unit of the operations can be done in around 2000 square meters area having a built-up area of 500 square meters. Around Rs. 10.00 lacs will be spent on land whereas the built-up area only will be Rs. 30.00 lacs. Thus, land and building expenses will be about Rs. 40.00 lacs.

The raw material required for starting Rice Bran Oil Manufacturing Business

The total production of Rice bran oil in the country is estimated to be 9.00 lacs ton per annum out of which around 8.70 lacs tonne is edible oil and around 0.30 lacs ton is non-edible oil. The rice bran oil production in eastern state of India is reported to be 60,000 tons/annum.

List of licenses, registrations, and permissions required to start Rice Bran Oil Manufacturing business

Below is the list of licenses required to establish a Rice Bran Oil production unit-

  • Registration of firm
  • MSME registration
  • GST registration
  • ROC
  • 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

Manufacturing process of Rice Bran Oil in India

The rice bran oil manufacturing is done with chemical solvents or using pressing process. Here we suggest a small capacity rice bran oil guide and have used the pressing method, while large capacity units employ solvent making technique. We have to state that the hot extraction method will provide high quality and more yield when compared to the cold pressing method. When refers to rice bran oil production, the following three steps are essential, i.e., are preparing raw material preparing, extracting bran oil, and the last one is refining crude oil.

Rice Bran Raw Material Preparation: Before extracting oil from rice husk, the raw material is prepared thoroughly. Rice bran is screened primarily and later heated using steam at a temperature greater than 100°C to inhibit Lipase hydrolysis in rice bran before extraction is done.

Rice Bran Oil Extraction: You can extract the crude rice bran oil using a solvent in a chemical method or in a mechanical way with oil presses. After proper processing, the bran is fully stable enough for the extraction process where the oil is extracted, giving two products, a high-quality crude rice bran oil, and defatted rice bran.

Rice Bran Oil Refining: Crude rice bran oil is again processed in a process called refining, which separates the majority of free fatty acids and prepares an oil that is appropriate for a variety of animal or agricultural uses. Edible oil bleaching shows traces of minor flavor and odor compounds that must be separated using steam distillation before packaging. Some people demand de-waxed oil and hence a de-waxing process is carried out before distillation.

Steam distillation is the last step in the edible oil process and this eliminates the leftover flavors and residual free fatty acids. Once the oil is processed, it is now sent for packaging into retail bottles, bulk drums, etc. as per the manufacturer’s decision.

Rice Bran Oil Manufacturing Project Report – Economics of Bran Oil Manufacturing Business

In case if you miss this: How To Make Money from Organic Compost.

Rice Bran Oil Manufacturing Project Report
Rice Bran Oil Manufacturing Project Report (Pic source: pixabay)

1. Land and Building with covered area of 200 sq. mtrs: Rs. 1,00,000

2. Plant and machinery cost: Rs. 6,92,000/-

3. Miscellaneous fixed assets

(a) Electrification: Rs. 1,65,000

(b) Water Installations: Rs. 44,000

(c) Miscellaneous others: Rs. 55,000

Total: Rs. 2,64,000

4. Provision for contingencies: Rs. 49,500

5. Preliminary and Pre-operative expenses: Rs. 60,500

Rice Bran Oil Manufacturing Project Report – Total fixed Costs: Rs. 12,00,000

6. Rice Bran Oil Manufacturing Project Report – Working Capital

(a) One month’s Raw Materials: Rs. 1,89,292

(b) One month Power cost: Rs. 17,585

(c) One month Wages and Salaries: Rs. 35,750

(d) One month other expenses: Rs. 54,450

Rice Bran Oil Manufacturing Project Report – Total Working Capital: Rs. 2,97,077

Total project cost: Rs.14,97,077

(Say Rs.14,97,000).

Profit in Rice Bran Oil Making Business

Annual Sales Realization: Rs. 20,00,000

Profit = Sales – Project Cost = Rs. 20,00,000 – Rs. 14,97,000

Rice Bran Oil Manufacturing Project Report – Profit per annum = Rs. 5,03,000.

Conclusion of Rice Bran Oil Manufacturing

Rice Bran Oil offers several benefits and is an excellent choice to gain nutrition as the oil comprises vitamins like B and E, proteins, fatty acids, antioxidants, collagen, elastin, Oryzanol, and Ferulic Acid. Antioxidants and vitamin E are good for the heart as they reduce bad cholesterol quantity and avoids cardiac arrest. The compounds such as oryzanol and ferulic acid are used as functional food supply materials. Besides these advantages, rice bran oil consumption will maintain the immune system, aids in weight loss, prevent cancer-like ailments, relieve menopausal symptoms, and enhance skin health.

These benefits incline the capitalists to venture into rice bran oil manufacturing and thus could supply cooking oil and various other essential products which need rice bran oil as one of its ingredients. It is even considered to be the most useful vegetable oil offering several benefits over other standard vegetable oil. Although it is classified as “oil”, rice bran oil is entirely safe for intake by patients having cardiac problems, diabetes, cholesterol, or high blood pressure.

Because of all these benefits you can expect good profits in Rice Bran Oil Making Business. So, you can start the business by considering all these points, as it is a profitable venture for the entrepreneurs who are thinking to start an oil milling business.


  1. I am interested in setting up a small scale rice bran oil project ,
    What is the minimum qty to produce with minimum capital. As above is it 15lakh only ??
    Kindly let me know in details.

    With warm regards
    Sanjib Mohanty


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