Soybean Oil Manufacturing Project Report

Soybean Oil Manufacturing Project Report, Business Plan


Hello friends, today we are here with a new topic called ” Soybean Oil Manufacturing Project Report and Business Plan”. Soybean oil is manufactured using seeds. Here the seeds can be used to obtain oil by following the pressing or solvent extraction procedure. This vegetable oil is produced in high volume. The oil quantity in the seed is approximately 20 % on a dry basis. The crude Soybean oil of high grade is a slightly amber color, which upon refining with alkali changes to the light yellow color seen for almost every vegetable seed oil. Soybean oil manufactured using green or immature beans may have sufficient chlorophyll which could give a greenish color but it does not happen as the yellow-red pigments of the oil will get bleached in hydrogenation.

The crude oil specifically manufactured obtained by solvent extraction method comprises

relatively high quantities around 1.5 – 2.5% of non-glyceride compounds rich in phosphatides. The FFA content of high-grade crude Soybean oil is found to be slightly greater than 0.5%.

Plant capacity per annum: The expected plant yield could be around 15000 M.T. yearly.

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

Market potential of Soybean Oil Manufacturing Business

The solvent extracted Soybean oil is majorly sent to Oil refineries, which transform it into Refined Soybean Oil. This is how the oil is edible after the refining step. In India, the Vidarbha region of Maharashtra is rich in soybeans. Hence, there are several refineries, who purchase solvent extracted Soybean oil for refining it. A proper analysis about the trends of oil employed for edible purposes, Soybean oil has great demand. This is mainly due to the high cost of other edible oils such as Sunflower oil, Soybean Oil, Mustard oil, etc. when compared to Soybean oil. Refined and partially hydrogenated Soybean oil is considered for the manufacturing of margarine and shortenings. Thus, in this area because of abundant raw materials, customers are high in number and due to the cost aspect, this project has gained a high market potential. 

Basis and presumptions of Soybean Oil Manufacturing Business

a. The plant is operated in three shifts. About 8 hours daily day and 300 working days for a year.

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

c. The expenses regarding raw materials, packing materials, machinery and considered at the time of planning the project profile could differ from place to place and time to time.

d. The rental expenses of the production shed 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 seed is around 18.5% for the calculation works.

Implementation schedule of Soybean 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 – 2 months
  • Registration under MSME Act 2006 and loan sanction 2 – 5 months
  • Machines Purchase and acquiring them 4 – 5 months
  • PFA License 5 – 7 months
  • Requesting power connection 5 – 7 months
  • Machinery Installation 7 – 8 months
  • Recruiting Staff & test run 8 – 9 months
  • Commercial Production can be presumed to begin from the last and tenth month

The general requisites for obtaining license, permissions and registrations required are mentioned below:

a. Land and Plant Layout.

b. Ownership Proof for the land acquired or the Land of Consent letter from the owner, if the land availed is on rent.

c. The Memorandum of articles of association or partnership dead copy, and the list of

Directors etc. according to the organization pattern.

d. Photocopy of the packing material specimen.

e. NOC from State Pollution Control Board.

Raw materials required for starting Soybean Oil Manufacturing Business

In case if you miss this: Soap Manufacturing Project Report.

Soya Seeds
Soya Seeds (Image credit: pixabay)

The essential raw material for soybean oil is soy seeds. Apart from that, you have to purchase Hexane and other necessary chemicals. Along with that, you have to obtain the packaging materials for bulk packing.

Machinery required for setting up Soybean Oil Production Plant

For setting up the plant, the primary need is the land. If you already have your land to start manufacturing works then it is best.

Otherwise, you can acquire land at an industrial location. Usually, around 2000 sq. ft built-up area is enough for a small-scale unit. We have included a few necessary machines 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 Condensor
  • 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

Manufacturing process of Soybean Oil

The Soybean oil is manufactured by using the Solvent Extraction Method. In this method, the solvent gets diffused into the oil-bearing cells of the seeds that will give a solution that contains the solvent for instance “Hexane” and oil. The complete process is segmented into three main steps as mentioned below:

a. Preparatory Section:

A proper extraction is performed when the oil-bearing cell of the material is in contact with a solvent. If the material size is small, the penetration of the solvent into cells is better. Hence, an optimum size is highly significant for efficient extraction. To achieve this Soybean seeds are sent through expanders after doing the steps like cracking, cooking, and flaking.

b. Main Extraction:

In this step, the extraction unit consists includes several solvent sprayers, which spray the solvent on a complete bed of raw material. The length & breadth is optimized to provide sufficient duration for intimate contact penetration and percolation of solvent into seeds. Finally, the material that exits the spraying chamber is deoiled content with a solvent that can be recovered in the desolventizing step. The obtained mixture of Oil and solvent are known as Miscella is transferred to the miscella tank, which will pass it to the desolventiser.

c. De-solventisation:

The extracted material has the affinity to sustain the solvent within it, and this solvent has to be removed. The retention differs from 20 % -35 % weight of the material extracted. The basic theory involved in de-solventisation is heating with steam to a temperature that is higher than the boiling point of solvent this ensures no solvent is left over with material. Vapors of solvent are passed to the scrubber, where the solvent to trace vapors gets washed. Next, the Deoiled and desolventised meal will be transported to the bagging section using a conveyor. A cooling arrangement is set up to ensure proper cooling of the material to make bagging easy and have 10-12% moisture.

d. Distillation:

The Miscella (Oil and solvent mixture obtained in the extractor) usually contains 12% to 18 % of the oil in the solvent. Distillation is done in three stages under a vacuum to avoid oxygen as the oil is heated to a high temperature. First evaporation is carried out in Economizer and reduced the solvent in the first and second cycles, leaving only oil. This oil is again treated using steam to ensure that there is no solvent left in the oil.

The solvent vapors produced here are passed through oil – vapor separator which separates any oil particles that could have been trapped with the solvent vapors and are then passed to carry out condensation for solvent recovery in the condenser.

Soybean Oil Manufacturing Project Report / Economics of Soybean Oil Manufacturing business in India

Land and Building: Rs. 5,50,000

Plant and Machinery: Rs. 2,70,000

Miscellaneous Assets: Rs. 55,000

P&P Expenses: Rs. 40,000

Contingencies @ 10% on Land and Building and Plant and Machinery: Rs. 80,000

Soybean Oil Manufacturing Project Report – Working Capital Margin: Rs. 1,35,000

Total: Rs. 11,30,000.

Soybean Oil Manufacturing Project Report – Means of finance

Promoters’ Contribution @ 25 %: Rs. 2,80,000

Loan from Bank/FI: Rs. 8,50,000

Total: Rs. 11,30,000

Debt Equity Ratio: 1.96 : 1

Promoters’ Contribution: 25%.

Soybean Oil Manufacturing Project Report – Working capital calculation

Raw materials/ Packing materials: Rs. 1,70,000

Working expenses: Rs. 1,00,000

Finished goods: Rs. 1,00,000

Receivable: Rs. 80,000

Total: Rs. 4,50,000.

Soybean Oil Manufacturing Project Report – Cost of Machinery

Table Ghani 1: Rs. 70,000

Oil Expellers 2: Rs. 80,000

Filter Press 1: Rs. 60,000

Other Support Equipments, electric motor and testing facilities: Rs. 60,000

Total: Rs. 2,70,000.

Soybean Oil Manufacturing Project Report – Profit in Soybean Oil making business in India

Sales price of Soybean Oil: Rs. 32,16,000

Sales price of De-oiled Cake: Rs. 4,44,000

Total: Rs. 36,60,000.

Profits in Soybean Oil making business = Sales – Project cost = Rs. 32,60,000 – Rs. 28,80,000 = Rs. 7,80,000.


  1. I need complete project Report of soybean oil Manufacturing plant as well as guidance to proceed further


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