Groundnut oil is called peanut oil and it is also called peanut oil in other words, as far as its production opportunities in India are concerned, because India being an agricultural country also produces a significant amount of peanut. Does. Therefore, the entrepreneur starting this type of business is expected to have easy availability of raw materials. Production of groundnut oil in India is considered economically beneficial because the export potential of this product is huge. So even though the demand for groundnut oil is not very high in the domestic market, the entrepreneur can earn by exporting his product to other countries. Apart from this, there is an advantage of starting this kind of business that the entrepreneur can start it from any level, small, medium or large depending on his investment capacity. According to a figure, a metric ton of 1000 kg of peanut produces about 420 liters of peanut oil, 420 kg of groundnut cake and about 40 kg of peanut waste (silt). So further in this article we will talk about the business of making groundnut oil, but before that we know what is groundnut oil?
What is Peanut or Groundnut oil?
Groundnut oil Yankee Groundnut Oil, also known as peanut oil, is a botanical oil derived from peanuts. This oil has a strong peanut flavor and aroma. This oil is used to roast American, Chinese, South Asian and Southeast Asian cuisines and make them with the aim of gaining extra flavor. Groundnut oil is also used in making peanut butter, which is why its demand is present in the domestic and international market.
Groundnut Oil Market
If we talk about peanuts, it is a popular source of food worldwide, and as far as Groundnut Oil Yankee peanut oil is concerned, it is mainly used by the confectioner for cooking and for making confectionery items. Apart from this, it is also used in making peanut butter. Perhaps this is the reason that peanuts occupy the top position in the list of edible oils exported from India. Since it is seen as a premium oil, its cost and selling price are slightly higher than other edible oils. This is to say that the price of other edible oils available in the market is lower than the price of peanut oil, it is available in the market in refined and filtered forms, but filter oils are much better than nutrients. According to a figure, the size of Groundnut Oil Market globally was 188,000 MT in FY 2013-14, in addition to which India exported around 16,500 MT of groundnut. Due to reforms in export policies and liberal policies by the Government of India, more export of groundnut is being expected.
How to start a business of making peanut oil?
Like other businesses, to start Groundnut Oil Manufacturing, there is a need to manage land and building, staff, management of finance, necessary licenses and registration etc. In this business, the entrepreneur also has to find out where he wants to start this business, whether there will be easy availability of raw materials at a reasonable price or not. By the way, peanuts are seen in every area during the season, but the question is whether the entrepreneur will get peanuts at that location at reasonable prices. Therefore, to start this type of business, the entrepreneur has to choose a location where peanuts are cultivated by the farmers, so that the entrepreneur can get the raw material easily and at reasonable prices.
1. Land and Building Management
As we have also mentioned in the above sentence, how important it becomes to choose a right location based on the availability of raw materials. To start this business, the entrepreneur has to choose a location where there is the availability of electricity, water, roads etc. Therefore, the entrepreneur can develop a floor plan and then start the construction work in the land accordingly. But if the entrepreneur does not have his own land, then he should try to rent a building built at the appropriate location. Since the Groundnut Oil Manufacturing business may take a long time to operate and freeze, it may be beneficial for the entrepreneur to lease the land for a longer period of time. As far as how much land will be required, it depends on what size the entrepreneur plans to set up a business. To start this type of business on a small scale, 500-700 Square Feet space will be sufficient.
2. Fund Arrangement for Groundnut Oil Business:
Similar to setting up any manufacturing industry, two types of costs are the key to starting a groundnut oil manufacturing business. To start this type of business, refinance scheme facility is also available in NABARD. The entrepreneur can apply for a term loan or a mortgage loan to manage the fixed costs. And the working cost can be managed by the entrepreneur through his own personal savings, overdraft facility etc. from his nearest bank or financial institution.
3. Required License and Registration
To start this business of Groundnut Oil Manufacturing the entrepreneur may require the following licenses and registrations.
- The entrepreneur may need to register as a proprietorship or a one-person company to give his business a legal form.
- Apart from this, tax registration will also be required for billing invoices.
- A trade license from a local authority such as a municipal corporation or municipality may be required.
- Since Groundnut Oil is an edible oil, FSSAI License will also be required to start it.
- The entrepreneur may also require industry base registration with a factory license.
- In addition, BIS Certification and Agmark registration may also be required.
- No objection certification from the Pollution and Fire Department may also be required.
- If the entrepreneur is planning to export his product, he may also need the Import Export Code.
4. Machinery Equipment Raw Material Shopping
The list of machinery used in the Groundnut Oil Manufacturing business is as follows.
- Pre cleaner machine for oilseed cleaning
- Cans and Trees to Handle Oil Seeds
- Batch Type Solar Dryer
- Tapping screw-type mechanical oil expeller
- Filter press
- Steel drum for storing edible oil
- Weight gauge
- Semi-Automatic Bottle Filling Machine
- Moulded Polycarbonate Bottle Capping Less Sealing Machine
As far as the raw materials required for groundnut oil manufacturing are concerned, the main raw material for this is groundnut seeds. So it is available in almost all the regions in the season, so the entrepreneur can buy it locally as well, according to one data, peanut seeds provide up to 44-50% oil and 50-55% cake and other items. Provides. In addition to peanut seeds, caustic soda, bleaching earth and packaging materials are also required.
5. Start Construction Extraction Process for Groundnut Oil:
If we talk about the Groundnut Oil Manufacturing Process, it can be divided mainly into two parts, first is mechanical processing and second is solvent extraction. But for grains such as peanut seeds that have high oil content, mechanical pressings are used, where about 85% of the oil can be extracted from the seeds in this process. Fifteen percent of the oil left in the oil cake can also be extracted with the help of a solvent. In the mechanical process, the Groundnut oil manufacturing process can be divided into three parts Preparation, Pressing and Crude Oil Refining.