groundnut oil business plan

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  • 【Step-by-Step Guide】How To Start Groundnut Oil Business in Nigeria

Starting an edible oil mill business  is a profitable venture that requires careful oil business plan and execution. If you're interested in entering the cooking oil processing industry, you've come to the right place. In this article, we will provide a comprehensive guide on how to start a groundnut oil business that is both profitable and sustainable. We will cover everything from creating an oil business plan, selecting the right peanut oil mill equipment, and marketing your products to achieve success in this competitive market.

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6 Steps of Starting Small Groundnut Oil Processing Business in Nigeria

  • Developing the Groundnut ​Oil Mill Business Plan

Before starting your groundnut oil mill business, you need to have a comprehensive business plan. The oil production business plan should outline the mission and vision of the business, target market, marketing and sales strategies, and financial projections. The plan should be comprehensive and realistic to ensure the success of the business. (Related other oil business post: mini soybean oil making buainess plan>> )

  • Securing Funding for the Peanut Oil Production Business

The next step is to get funding for your groundnut oil business. This can be done through loans, grants, or partnerships . It is important to have a excellent business plan to present to potential investors or lenders to obtain enough funding for the business. And i t is necessary for you to know: How much does a small scale groundnut oil mill project setup cost >> . 

  • Choosing the Best Groundnut Oil Mill Equipment Manufacturer/Supplier

Choosing the right groundnut oil extraction and refinery machines manufacturer is crucial for the success of your business. The quality of the groundnut oil mill plant you use will determine the quality of your final product, as well as the efficiency and productivity of your operations. Here are some factors to consider when choosing an oil processing equipment manufacturer: 

  • Reputation: Do some related research and read reviews from other customers who have used the manufacturer's equipment. Looking for manufacturers with a solid reputation in the groundnur oil production industry.
  • Quality: Look for the manufacturers who use high-quality materials and components in their peanut oil mill equipment. Check that the groundnut oil pressing and refining machinery is built to last and can withstand the rigors of continuous operation.
  • Service: Choose a manufacturer that provides good after-sales service, including technical support and spare parts availability. 
  • Price: Of course, groundnut oil extraction machines price is an important consideration. However, don't sacrifice quality for a lower price. Cheaper groundnut oil production equipment may end up costing you more in the long run due to repairs, maintenance, and downtime. (Related Information: Groundnut oil extraction machine price in Nigeria>> )
  • Setting Up the Groundnut Oil Mill Plant for Your Oil Business

When designing the edible oil mill plant layout , you should consider arranging it in a way that optimizes workflow and productivity. Consider the following factors when designing your plant layout: 

  • Equipment layout: Place the peanut oil making machine  in a way that maximizes space and optimizes workflow. Make sure there is sufficient space around each piece of equipment for maintenance and cleaning.
  • Safety considerations:  Safety should be a top priority when designing your edible oil processing plant layout. Place equipment in a way that minimizes the risk of accidents and ensure that emergency exits are easily accessible.
  • Flow of materials:  Design the layout in a way that optimizes the flow of raw materials, finished products, and by-products. This will help maximize efficiency and minimize waste. 

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  • Understanding Groundnut Oil Extraction Methods and Oil Refining Processes

When you have set up your oil mill plant, you need to consider about the peanut oil extraction and oil refining process . The followings are some key factors to consider: 

  • Different Methods of Peanut Oil Extraction:  There are several methods of oil extraction , including oil mechanical pressing and oil solvent extraction. Mechanical pressing involves using oil press machines to press the oil out of nuts. Solvent extraction method uses chemical solvents to extract oil from the oil seeds. There is a hybrid method that combines mechanical pressing with solvent extraction. Each method has its own advantages and disadvantages, and you should choose the one that is best suited for your business. 
  • Peanut Oil Refining Process:  After the groundnut oil is extracted, it needs to be refined to remove impurities to improve its quality. Refined first-class peanut oil and the concentrated peanut oil in the step of the oil refinery process is different. Refined first-class peanut oil is using conventional full refining process, the whole process includes degumming, deacidification, decolorization, deodorization,dewaxing and other major processes; while concentrated peanut oil is produced using low-temperature crystallization, anhydrous dephosphorization process.  (Read More:  buy groundnut oil refinery plant in Nigeria>> )

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  • Marketing and Selling the Groundnut Oil Products

The final step in starting a groundnut oil mill business is to develop a marketing strategy and identify potential customers and distribution channels. Packaging and branding the products can help to create a unique selling proposition and build brand recognition. Social media and online marketing can also be used to promote the business and products.

Buy Low Cost Groundnut Oil Production Equipment

ABC Machinery has established itself as a renowned manufacturer and supplier of edible oil processing machinery. Our expertise and experience in the field have earned us an esteemed reputation worldwide. Our range of products includes  screw oil press machines  and  oil refinery equipment  capable of handling a diverse range of oil-bearing seeds and nuts. These machines can efficiently produce different types of vegetable oils, including but not limited to soybean, copra, peanut/groundnut, palm kernel, hemp seed, coconut, and rapeseed. And we have established many successful cooking oil procesing project around the world, such as  India ,  Uganda ,  Nigeria , and  Ghana ,etc.

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Groundnut Oil Production Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Agriculture Sector » Agro Processing

Are you about starting a cooking oil production business? If YES, here is a complete sample groundnut oil production business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a groundnut oil production business . We also took it further by analyzing and drafting a sample cooking oil production business marketing plan template backed up by actionable guerrilla marketing ideas for groundnut oil production businesses. So let’s proceed to the business planning section.

Groundnut oil is an edible vegetable oil that is produced from seeds that are edible bearing in nature. To get groundnut oil, the seed is usually prepared, pressed and then filtered. Whilst starting this business might be very lucrative, anyone intending to start this business will need to ensure that they have studied the business well.

The business is one that would require technical skills, so the entrepreneur must ensure that he gets the right people to handle all the production process of getting refined and high quality groundnut oil.

To start this kind of business, getting a business consultant is very important. The business consultant will offer advice and suggestions to setup the oil production chain, the machines to be bought, run the business and thrive against your competitors in the industry.

Getting a business plan is very important as it allows you understand the business you intend going into. But writing a business plan can be very intimidating so it would be best if you hire a business plan writer or go online to get free business plan samples to help you in writing one. Below is a sample cooking groundnut oil business plan;

A Sample Groundnut Oil Production Business Plan Template

1. industry overview.

Groundnut oil production is usually done when oil is removed from the groundnut seed. The manufacturing process can either be done on a small or medium scale depending on the cost of the project and desired output. Groundnut oil is not only used for cooking or as a shortening but also as a base for confectioneries or to make peanut butter.

Globally, india ranks amongst the top exporters of cooking groundnut oil, although it is regarded as a premium oil whose cost is very high. Groundnut oil is not only available in filtered forms but also in refined forms as well. In the market, filtered oils are regarded as superior in quality.

Raw materials that are required or producing groundnut oil is the groundnut seed. The seed produces about 50% of oil and 55% of the meal. Producing edible cooking groundnut oil is grouped into two groups, mechanical pressing and solvent extraction.

Groundnuts are oilseeds with high oil content that require mechanical pressing before being extracted. The production process for groundnut can be grouped into three stages such as preparation, pressing and crude oil refining.

2. Executive Summary

McQueen Groundnut Oil Inc is a leading and standard groundnut oil producing company here in Fort Lauderdale – Florida that intends to produce cooking groundnut oil to domestic and commercial customers not only here in the united states of America but also all over the world. We will also engage in offering other services in addition to our core service to our various customers.

Our intention of starting our own groundnut oil producing company is so as to be able to sell highly refined and quality groundnut oil that is cholesterol free to our various customers not only here in Florida or the United States but all over the world as well. Our intention is not only to establish our business for profit making but to also compete favorably with our competitors but nationally and internationally.

Because of the best practices standard we have set for ourselves, we have ensured that we procured the best pressing and refining machineries that will allow us to be able to produce quality and refined groundnut oil. Our packaging methods are also up to standard as we carry out all our activities with hygiene in mind so that we are able to set a standard for our customers.

Getting the best distribution networks are very important for this kind of business and so we have secured the best channels that will see our groundnut oils get to the end users. We will continue to seek for the best means at ensuring that our products get to our consumers at the right time.

We will ensure that we source for our raw materials from reliable vendors and suppliers, who use organic means to grow the crops, so as we will be able to give our customers the organic refined groundnut oil that is part of our corporate identity.

We intend to incorporate good work ethics as our corporate goal and also be renowned for our transparency standards. In order to ensure that we adhere to our corporate culture, we will recruit the best professionals possible that not only understand the industry we are in but also understand our company’s policies and are dedicated to ensuring that we are able to achieve our goals and objectives.

We will ensure that we get our employees to undergo continuous training that will not only enhance their skills but make them increase productivity for our organization. We will also ensure that our employees are well paid and undergo performance appraisals that will make them put in their best.

Finally, our Chief Executive Officer, Ms Laurie McQueen is a topmost entrepreneur who has more than 15 years experience in this industry and also in a managerial role. She knows how best to help us achieve our intended goals and objectives.

3. Our Products and Services

McQueen Groundnut Oil Inc intends to produce and supply highly refined groundnut oil to its various customers here in the United States of America as well as all over the world.

Our aim as a business is to ensure that we not only generate revenue but maximize profit as well and to this end, we intend to create multiple sources of income so as to be able to have a solid bottom line. The ways we will source for extra means of revenue will be according to our ambition and the laws of the United States of America.

Therefore the products and services we intend to offer at McQueen Groundnut Oil Inc are;

  • Sale of processed groundnut oil for domestic and commercial purposes
  • Sale of byproduct – groundnut cake
  • Sale of groundnut sludge
  • Consultancy and Advisory Services

4. Our Mission and Vision Statement

  • Our vision is to ensure that we produce highly refined and quality groundnut oil that is cholesterol free for our various customers and also be amongst the top three groundnut oil producers globally.
  • In order to ensure that we achieve our vision, we intend to ensure that we get the best equipment and also hire the best employees so that we will be able to achieve our goal of producing highly refined and quality groundnut oil.

Our Business Structure

Building a business structure that will be just right for our groundnut oil business is very important to us, which is why we are making sure that we put in all efforts to recruit the right hands that will help us achieve our goals and objectives.

It is important that our management team understand and identify with our core vision and objectives and as such is able to effectively communicate these policies and goals to the lower end staff and ensure that it is effectively implemented.

Due to the fact that we intend to offer additional services to our core service, we will hire more employees than the conventional groundnut oil producing company. This is so that the different tasks will be effectively handled without pushing too many responsibilities in the hands of a few employees.

Below is the business structure we intend to build for McQueen Groundnut Oil Inc;

Chief Executive Officer

Plant Manager

Purchasing Manager

Human Resources and Admin Manager


Marketing Executives

Truck Drivers

Customer Care Executives

Maintenance Team

Security Guard

5. Job Roles and Responsibilities

  • Creates strategies and policies for the overall direction of the organization
  • Responsible for negotiating with high level clients on behalf of the organization
  • Ensures that policies created are effectively implemented
  • Monitors production processes and ensures that it aligns with both company and industry standard
  • Develops and implements budgets for production
  • Seeks ways to reduce costs without reducing quality
  • Sources for reliable vendors and suppliers of raw materials
  • Drafts purchasing contracts and ensures that it is to the benefit of the organization
  • Drafts and implements purchasing strategies on behalf of the organization
  • Responsible for recruiting, giving orientation as well as ensuring that customers get attuned to the company’s policies
  • Responsible for employee welfare and incentive packages as well as carrying out performance appraisals on behalf of the company
  • Ensures that the administrative functions of the organization are carried on smoothly
  • Responsible for creating ensuring the implementation of financial statements, records and budget on behalf of the organization
  • Prepares tax records and ensures that they are submitted to the right authorities
  • Responsible for cash inflow and outflow and petty cash
  • Drafts effective marketing strategies and modifies them continuously in order to generate revenue for the organization
  • Engages in direct marketing with customers on behalf of the organization
  • Manages existing customer relationship in order to help increase customer loyalty and retention on behalf of the organization
  • Responsible for delivering products to customers at accurate destinations
  • Carry out maintenance on the vehicle when necessary and report major faults to the management
  • Keep traffic laws and regulations and also a logbook
  • Responsible for taking orders, answering enquiries and providing accurate information to clients
  • Ensures that customers’ complaints are readily resolved on behalf of the company
  • Keeps an updated customer database on behalf of the company
  • In charge of maintaining all the equipment and machineries used by the organization
  • Arranges for new parts and replacements for the machineries
  • Reports major machinery and equipment faults to the management
  • Patrols the facility and its perimeter during work and after work hours to ensure that there is no trespasser
  • Monitors incoming and outgoing people and visitor and responsible for surveillance equipment
  • Remains updated on security tips and ensures that company staff is aware of security tips as well

6. SWOT Analysis

Due to the fact that we intend to run a standard cooking groundnut oil producing company, we are striving to ensure that we put up processes; plan and structures that will allow us attain this excellence. This is clearly why we have engaged the services of a reputable business consultant here in Fort Lauderdale – Florida, to look through our business concept and determine if the business we are going into is worthwhile and also if we are going to not only thrive in this business, but also compete favorably against our competitors.

In view of our request, the business consultant used four attributes (strengths, weaknesses, opportunities and threats) in order to determine how we are likely to survive and grow as a business. Therefore the SWOT analysis that was conducted on behalf of McQueen Groundnut Oil Inc is as follows;

Our strength lies in the fact that we offer our customers’ high quality processed groundnut oil which is cholesterol free. This means that customers who use other substitutes because they feel those are better for their diet will stick to our own brand of groundnut oil instead. We are in a location that is not only strategic but also convenient for our customers and employees to access.

Our facility is one that is conducive enough for our employees, while also being of high standard hygienically to produce our cooking groundnut oil. Those which we have chosen to work for our company is very competent and experienced especially as regards this industry.

They are also dedicated and committed to our corporate goals and philosophy.  Finally, our owner and Chief Executive Office, Ms. Laurie McQueen has more than 15 years experience both in groundnut oil processing and in management and will ensure that we are able to achieve our intended goals and objectives.

The groundnut oil processing industry is a saturated one and so would require us to adapt strategies that would allow us to stand out against our competitors. Also, because we are just starting up, we do not yet have the necessary finances and staff strengths as our already established competitors.

  • Opportunities

There are several opportunities that abound for us in this industry as cooking groundnut oil is widely consumed by a whole lot of people. We are however seeking innovative ways to attract the health conscious customers who have shifted to alternative sources because they feel that groundnut oil isn’t hygienic enough in helping to achieve their fitness goals. Our advisory and consultancy services will serve to open up more opportunities for us in this industry.

Facing threats as a business faces are to be expected if the business is a serious one. The threats that we are likely to face as a business will arise from unfavorable government policies, stiff competition from competitors, as well as customers’ shift to close substitutes on personal preference grounds. We have laid down strategies in place that will enable us handle whatever threats we are likely to face.


  • Market Trends

Cooking groundnut oil, which is referred to as vegetable oil by some, is one of the oil products in high demand; as a large number of people use it for consumption as well as for commercial purpose. While there are substitutes for groundnut oil, the fact that this oil is cheaper makes it why more people use this oil.

Groundnuts are nuts that can be found at all time and is regarded as highly nutritional, which is why it is amongst the top nuts recommended by doctors for women that are not only pregnant but for those that are also health conscious or going on a diet. Any entrepreneur going into this business will therefore make good money from it.

Starting this business would require ensuring that technical details are being put into place. However, there are few groundnut oils processing businesses here in the United States of America, which makes it very ideal for us to go into this kind of business and make a tidy profit from it. It is also necessary to ensure that professionals are being employed to handle all the technical details.

8. Our Target Market

Cooking groundnut oil is used by a whole lot of people and so this means that there is a lot of demand for this product, and therefore we cannot necessarily limit the target market without making a thorough market research. Our location here in Fort Lauderdale – Florida is one that is strategic and will allow us to map out effective plans in order to serve our numerous clients.

The market research we have conducted from reliable facts and statistics will allow us better understand the characteristics of our target market and the right strategies that we would draft to be able to cater to this market. Therefore from our research, the following groups of people are those that we will be selling our products and offering our services to;

  • Soap Manufacturers
  • Confectionaries
  • Cosmetic industries
  • Food industries
  • Grocery Stores and Supermarkets

Our competitive advantage

Our intention of starting a cooking groundnut oil production company is so as to be able to give our various customers not only here in the United States of America but all over the world, quality cooking groundnut oil that is cholesterol free. To be able to achieve this, we have drafted strategies that will allow us have a competitive advantage over that of our competitors.

Our first competitive advantage is in the quality of groundnut oil we are giving our customers all over the world. Because this is oil that is to be consumed, we have taken great care in ensuring that from the raw materials down to the processing all go through a high standard of quality checks. We take great pride in ensuring that our customers can trust our cooking groundnut oil.

We have engaged the services of the best professionals who not only know this industry thoroughly but also understand how best to make a business become the world standard we have intended for it.  Our employees also understand our corporate philosophies and goals and are willing and dedicated to ensuring that we achieve it.

We have put in place processes and plans that will ensure that our employees receive trainings as at when due. These trainings will allow them to have enhanced skills that will also improve their productivity for the company. We will also ensure that our employees are well paid and have better welfare packages than that of their counterparts in similar startups such as ours.

Finally, we will ensure that we put our customers first by not only meeting but exceeding their expectations. We will ensure that we take good care of our loyal customers and offer them incentives. We will ensure that we keep an updated customer database so as to keep in touch with our customers and allow them be aware of our products and other services that we might be offering.


  • Sources of Income

McQueen Groundnut Oil Inc is a leading and standard groundnut oil producing business that has been established with the aim of generating revenue and maximizing profit not only here in Fort Lauderdale – Florida, all over the United States of America as well as globally as well.

We intend to make profits from sales of different products and offering of services to our various customers. McQueen Groundnut Oil Inc will generate revenue from the following products and services;

10. Sales Forecast

Groundnut oil is a cooking oil that is being consumed daily by most people and used for domestic and commercial purposes and therefore will always be in demand.

Our location here at Fort Lauderdale – Florida is one that is very strategic and has us very optimistic of being able to not only generate the needed revenue within one year but also one that will allow us maximize our profit, as the forecast has shown that this is highly achievable.

We carried out several researches whilst conducting our sales forecast and used several assumptions and information from similar start-ups such as ours not only here in Florida but also all over the United States of America so as to be able to get accurate data to arrive at the below stated projections.

The stated projections for McQueen Groundnut Oil Inc based on accurate assumptions and data are as follows;

  • First Fiscal Year-: $600,000
  • Second Fiscal Year-: $1,100,000
  • Third Fiscal Year-: $2,000,000

N.B: The above sales projections were done based on certain assumptions and what was obtainable in the industry at the stated period. The assumptions were that there won’t be any stringent government policies, no arrival of a competitor offering same services as we were and also that the economy remains stable. Should there be any change in the above assumptions, our sales projections for the stated period will be affected.

  • Marketing Strategy and Sales Strategy

When writing a business plan, one important element that is not usually overlooked is the marketing and sales aspect. Not only are strategies created to better market a product or service, a budget is also created so that strategies can be effectively implemented. Marketing also serves a dual purpose as it not only generates revenue for the company but also creates awareness for the business as well.

Due to how delicate marketing is, we intend to hire reputable marketing experts who understand the nature of our business and the industry we are operating in to help create effective marketing strategies that we will use to be able to compete favorably against our competitors all over the United States of America.

We will not be limiting our marketing efforts to merely just the conventional means. We will be making use of unconventional means via technology to also market and sell our cooking groundnut oil to our target market. Our marketing team will be well versed in handling all our online affairs so as to attract more potential customers to our business from other states and even countries.

We will also empower our marketing team to conduct more market researches in order to be able to determine new target markets for our business. Our marketing team will also monitor marketing strategies and remove or modify those that are thought to be ineffective. We will in fact provide them with all that is necessary to be able to achieve our corporate sales goals and objectives.

Therefore the marketing and sales strategies that we intend to adopt for McQueen Groundnut Oil Inc are;

  • Ensure that we introduce our groundnut oil company officially to wholesalers and distributors as well as other industry stakeholders
  • Throw a grand opening party so as to create awareness about our business to our target market
  • Advertise our cooking groundnut oil business in newspapers (local and national) as well as on radio and television stations
  • Ensure that we engage in direct marketing and sales to our various customers
  • Use our social media platforms such as Facebook, Twitter, LinkedIn and Google Plus to market our cooking groundnut oil business
  • Ensure that our groundnut oil business is listed in local directories (Yellow Pages) and on online directories as well

11. Publicity and Advertising Strategy

Publicity is very important for every business, as it is what allows the target market that consists of both existing and potential customers. This is why even though a business has been established for a long period of time, it still engages in publicity so as to be able to not only retain its customers but also attract new customers to patronize it. The publicity we tend to create for our business is one that will project the image of our business positively.

In a bid to ensure that we create effective publicity strategies, we intend to engage the services of a brand consultant who understands the business and the industry we are in. the brand consultant has been empowered to use conventional and unconventional means to ensure that we get the awareness we need for our business not only here in Fort Lauderdale – Florida but also all over the United State of America.

Below are the platforms we intend to use in creating awareness as well as advertising McQueen Groundnut Oil Inc;

  • Create an official website and use this to create awareness about our groundnut oil producing company
  • Place adverts in local and national newspapers and on radio and television stations here in Florida and nationally as well
  • Participate in and sponsor relevant community programs here in Fort Lauderdale
  • Use our social media platforms such as Facebook, Twitter, LinkedIn and Google Plus to promote our groundnut oil producing company
  • Place attractive and distinctive bill boards in strategic locations all around Florida and outside its environs
  • Write articles and post on different relevant blogs and websites

12. Our Pricing Strategy

Determining what price to set for your products and services is very important and requires making detailed strategies to ensure that one picks just the right price that will not be detrimental to the business or chase customers away. In setting the right price for our business, we will consider our overhead and running costs as well as what our customers are also offering the target market.

However, while we intend to set the right price that will just be right for our business and fair to our customers, we will offer a discount in the first two months of our operations in order to attract customers to our business. After taking a thorough look at this strategy, we are convinced that we will not be running at a loss even though our profit margins might be low for these periods.

  • Payment Options

Any smart entrepreneur knows that it is very important for customers to have convenient means by which they pay for products and services. Therefore knowing this, we intend to offer various payment platforms so as to be able to cater to our various clients and their different preferences.

The different payment options that we therefore intend to make available are;

  • Payment via cash
  • Payment via checks
  • Payment via bank draft
  • Payment via online payment portal

It should be noted that the above payment options were carefully chosen by us to make payments not only easier for our clients but also to ensure that we are able to run our business without hitches.

13. Startup Expenditure (Budget)

Starting a cooking groundnut oil production business can be capital intensive especially as this business is one that needs equipment in order to be able to produce the groundnut oil for consumption. We therefore intend to use the bulk of capital to procure equipment, get a truck for delivery, get raw materials and also pay the salaries of our employees and utility bills for at least 6 months.

The major areas where we therefore intend to spend our start-up capital include;

  • Total fee for registering our groundnut oil producing business in the United States of America – $750
  • Obtaining of licenses and permits, accounting software and other legal expenses – $3,250
  • Marketing budget and promotion expenses for the grand opening of Queens Groundnut Oil Inc. as well as for general promotional activities for the business – $10,000
  • Cost of hiring business consultant – $3,000
  • Operational cost for the first 6 months (which includes employees salaries and utilities bills) – $150,000
  • Insurance (general liability, workers’ compensation, and equipment insurance) – $2,000
  • Cost of groundnut oil machines (separating machines, pressing machines, processing and refining machines) – $70,000
  • Cost of leasing a facility for 2 years and carrying out renovations – $100,000
  • Purchase of truck for distribution and delivery of groundnut oil – $50,000
  • Raw materials (groundnuts) and packaging materials – $20,000
  • Other start-up expenses (stationery, computer, printer, phones, furniture) – $10,000
  • Storage equipment (shelves, bins, racks) – $5,000
  • Cost of launching an official website – $1,000
  • Cost of throwing a party to launch our business – $5,000
  • Miscellaneous – $10,000

From the above estimate, it is apparent that we would need the amount of $440,000 in order to successfully start and run our groundnut oil processing to a certain standard here in Fort Lauderdale – Florida. It should be noted that the bulk of the capital will go into procuring equipment, renting a facility for at least two years, procuring a vehicle and also paying the salaries of employees and utility bills for at least 6 months.

Generating Funding / Startup Capital for Queen’s Groundnut Oil Inc Business

Queen’s Groundnut Oil Inc is a cholesterol free cooking groundnut oil that is owned and managed by Ms. Laurie McQueen. Ms. McQueen who intends to grow this business into one that is of international standard intends to approach external investors with vision that aligns with hers, whilst seeking other means of sourcing for capital.

Therefore, Ms. McQueen will seek for her start-up capital from the following sources. Below, therefore are the sources where we intend to generate our start-up capital from;

  • Generate part capital from sale of stocks of personal property
  • Source for loan from commercial bank
  • Generate capital from external private investors

N.B: From sale of stock and some private property, Ms. McQueen has been able to generate $140,000. She has gotten a loan of $150,000 from the bank that will be repaid in 7 years time at an interest rate of 2.4% annually; all the approving documents have been signed and the money will soon be credited into the company’s account before the end of the week.

She is also currently in the final stages of obtaining a loan of $150,000 from a private investor in exchange for an equity of 5%. All the terms have been discussed and signed on, and the lawyers are going through the documents to get it ready for signing.

14. Sustainability and Expansion Strategy

The way a business is structured determines how long the business will remain in existence. We are willing to go the extra mile to ensure that we hire competent professionals who understand the way our kind of business is run and how best to ensure that our kind of business becomes one that is a force to be reckoned with nationally and internationally.

The professionals we intend to hire will be one that also understand our ideology as a business and will remain committed to this ideology and ensure that it is well communicated to all stakeholders. We will also ensure that we have laid down processes that will allow for the environment to be conducive work-wise for our employees.

We will pay our employees well and provide them better welfare and incentive packages better than their counterparts in similar start-ups such as our across the country. We will also ensure that our employees undergo training so that they will have better skills that will not only see them enhanced in the industry but will also ensure better productivity for our business as well.

As much as we intend to generate as much revenue as we can, we will make sure that we retain at last 30% of our earnings back into our business. This is to ensure that we do not have to go externally to seek for funds all the time. Also, putting back our earnings into our business will allow us to be able to not only grow and sustain the business but also expand it as well.

Check List / Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Conducting feasibility studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
  • Purchase of trucks: Completed

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Groundnut oil production business plan guide in Nigeria

Groundnut oil production business in Nigeria is a very profitable project with huge export potential. Besides, the government of Nigeria has been very supportive of the edible oil production projects in recent years. In order to seize this chance, you can also firstly initiate the groundnut oil production business through setting up small or medium scale oil mill based on the desired output and project cost.

groundnut oil production in nigeria

Here is a groundnut oil production in Nigeria business plan guide given by our project managers. Hope it can help you.

To Initiate a groundnut oil production business, you require a feasibility study, procurement and installation of machines, hire staffs and so on.

1. The questions you need to consider before starting a groundnut oil production plant in Nigeria

(1)What do you have which can help you be a groundnut oil manufacturer? Raw material, budget, market or others?

(2)What product will you manufacture? Crude groundnut oil or refined groundnut oil?

(3)What is the most effective method to start your groundnut oil production business?

(4) How much will you cost to start the groundnut oil production business?

(5)How much will your product sell and what will your profit margin be?

(6)Where is the market for your product? Who will buy it? How will you market your product?

(7)How can you arrange finance for this business?

Ask yourself these questions before moving forward into the groundnut oil production business. And then you can move to the next step.

2. Arrange finance for your groundnut oil production business in Nigeria

No business can be successful without monetary support. So you need finance or borrowing money from banks.

3. The procurement of groundnut oil production machines

groundnut oil and groundnut meals

Choose high quality groundnut oil production machines and advanced groundnut oil processing technology. Only a customized detailed groundnut oil processing technology can give you the best production effect. So choose a professional vegetable oil machine manufacturer is your first thing to do.

Henan Doing Mechanical Equipment Co.,Ltd has more than 30 years enperience in designing and manufacturing groundnut oil production machines, and other vegetable oil machines. Our engineers can customized the groundnut oil production machine and technology according to your requirements.

4. Leran about the groundnut oil processing technology

Groundnut oil processing technology can be divided into pressing method, the combination method of pre-pressing and solvent extraction. Complete industrial groundnut oil production plant includes groundnut pretreatment & oil pre-pressing machines, groundnut oil solvent extraction plant and groundnut oil refining machine.

1) Groundnut pretreatment & oil pre-pressing machines introduction:

Groundnut pretreatment & oil pre-pressing machines include cleaning machine, crushing machine, flaking machine, softening machine, cooking machine and oil pre-press machine.

groundnut oil pretreatment & pressing machine

Cleaning: Remove impurities such as leaves, sticks, stones, sand, dirt, spoiled seeds and metal contaminants. This process is commonly referred to cleaning and scalping equipment including sieve, destoner, peeling machine, magnetic devices, and belt conveyor etc. The cleaning machine is good for peanut oil pretreatment and pre-pressing machine.

Dehulling: Most oilseeds need to remove the abrasive shells before oil extracting, since the oil content of shells and hulls is less than 1%. Besides, shelling can not only improve the capacity of oil extraction equipment, increase the efficiency of oil production, but also can reduce wear of oil expeller. Dehuller is commonly used in peanut oil pretreatment and pre-pressing machine.

Crushing & Flaking: Most oilseeds require size reduction prior to oil extraction. Crusher and flaker are used in peanut oil pretreatment and pre-pressing machine. Some small seeds such as corn germ, rapeseed and canola don’t need to be cracked.

Cooking: Heating the seed is an option, but not necessary. It can increases efficiency of extraction and protein availability.

Pre-pressing: The oilseeds pre-pressing machine adopts domestic mature DY series pre-presser which specialized for peanut, the oil residue in cake after pre-pressing is about 10-18%, the peanut cake can adopt solvent extraction method to get more oil. The most features of this machine is low energy consumption, less occupied area, etc which is the first choice for peanut pre-pressing.

2) Groundnut oil solvent extraction plant introduction:

groundnut oil solvent extraction plant

The groundnut oil solvent extraction plant is one of the most important pieces of equipment in the peanut oil mill plant. Groundnut oil solvent extraction plant is ideally suitable to extract and produce oil from any kind of oil cake, such as peanut / groundnut, sesame, copra, linseeds, sunflower, castor seed, cotton seed, palm kernel etc. Peanut oil solvent extraction plant consists of extraction system, D.T.D.C  system, condenser system and recovery system. Groundnut oil solvent extraction plant available at small scale and big scale as per buyer's need.

Functions of Groundnut oil solvent extraction plant main parts:

Extracting: To extract the oil in the cake by solvent, the general solvent is 6# extraction solvent oil or commercial hexane.

Desolventising: To remove and recover the solvent in the meal; Dry and cool down the meal at the same time.

Evaporating and stripping: Heating the the miscella by indirect steam, so that can vaporize the solvent and concentrate the miscella.

Solvent recycling: This process is to recover the solvent, decrease solvent consumption, Solvent recycling can keep safety production and improve product quality in peanut oil solvent extraction plant.

3) Groundnut oil refinery plant introduction:

groundnut oil refinery plant

Groundnut oil refinery plant is to refine crude groundnut oil into standard groundnut oil. It consists of degumming process, deacidification process, decolorization process and deodorization process.

Main process of groundnut oil refinery plant

(1) Degumming --- to remove gum and impurities from crude oil

(2) Deacidification --- using alkali to neutralize acid inside crude oil

(3) Decoloration --- using clay to bleach crude oil

(4) Deodorization --- using deodorizing tower to remove odor from crude oil, then will get refined peanut oil

I hope this business plan guide can help you a lot. If you feel that it is good to sart a groundnut oil production business in Nigeria, and you already have enough budget to buy the groundnut oil production machine, you are welcome to contact Doing Company. We will provide you with high quality groundnut oil production machine and best after-sales service.

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groundnut oil business plan

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How To Write a Business Plan for Groundnut Oil Business in 9 Steps: Checklist

By alex ryzhkov, resources on groundnut oil.

  • Financial Model
  • Business Plan
  • Value Proposition
  • One-Page Business Plan

Are you looking to start a groundnut oil business? According to recent statistics, the global demand for edible oils is expected to reach $130 billion by 2024 . With such potential for growth in the industry, now is the perfect time to start your own groundnut oil business.

However, before launching your business, it is crucial to have a well-written business plan in place to guide your operations. In this article, we will provide you with a checklist of 9 key steps to help you write a comprehensive business plan for your groundnut oil business.

From conducting market research to identifying potential suppliers, each step is essential for your success. By following this checklist, you can create a solid plan that outlines the necessary steps to turn your business idea into a profitable venture.

With the right research and planning, you can build a successful groundnut oil business that serves the needs of your target customers and brings in profits for years to come.

Conduct Market Research

Before starting your groundnut oil business, it is essential to conduct market research. This research will help you understand the demand for your product, your target audience, and your competition. Here are some important steps you should follow to conduct successful market research:

  • Define your research objectives: Your research objectives help to guide your research and provide clarity on what you want to achieve from your research.
  • Identify your target market: Identify who your potential customers are, what their wants and needs are, and what drives their purchasing decisions. This understanding will help you tailor your products and services to meet their needs.
  • Analyze your competition: Conduct a thorough analysis of your competition, their offerings, and their pricing structure. This analysis will help you create a unique selling point for your business that sets you apart from the competition.
  • Define your unique selling proposition (USP): Your USP should explain why your customers should buy from you and not your competitors. Understanding your USP can help you create a targeted marketing message.
  • Gather data: Collect data through surveys, focus groups, and online research. This data will help you make informed decisions about product development and how to reach your target audience.
  • Use social media platforms to gather information about your competition and target market
  • Attend trade shows and industry events to network and gather information about the industry
  • Engage with potential customers through online forums to get feedback on your product or service

Conducting thorough market research will help you make informed decisions about your groundnut oil business. Armed with this information, you can devise a solid business plan and marketing strategy that will set your business up for success.

Identify Your Target Customer

The success of any business largely depends on how well you know your target customer . This step is where you decide the kind of customers you want to sell your groundnut oil to and how to market effectively to them. To get started, consider the following:

  • What is the age and gender of your target customer?
  • What are the preferred uses of groundnut oil among your target customers?
  • What income bracket are they in?
  • Where do they typically shop for groceries?
  • What is their preferred method of communication (social media, email, text, etc.)?
  • Consider using surveys and focus groups to gather information on your target customer.
  • Use data from your market research to create customer personas or profiles that help you understand your customers' needs and preferences.
  • Keep your target customer in mind when developing your marketing and branding strategy.

For instance, if your target customers are health-conscious individuals or those who prefer organic products, then you need to brand your groundnut oil accordingly. You may also consider partnering with health food stores or food blogs that cater to this customer group.

On the other hand, if your target customers are retail stores or supermarkets located in urban areas, then you might need to focus on branding your product's convenience and affordability. You may consider offering bulk discounts, flexible payment plans, and free delivery services to attract this customer group.

The idea is to identify your target customer and tailor your business plan to attract and retain them.

Analyze The Competition

One of the critical steps in starting a groundnut oil business is analyzing the competition. This means gaining an understanding of the companies already operating in the same space as your business. This analysis can clue you in on what works, what doesn't, how to differentiate yourself, and what problems to avoid.

An essential factor in analyzing your competition is doing research on their products and services. This means analyzing their price points, distribution networks, production capacity, and customer target market. Their marketing strategies and advertising messages also play a vital role in determining what marketing efforts are successful in the market.

Tips on Analyzing Your Competition

  • Visit their website regularly to track news and updates about their products and services.
  • Engage with their social media accounts to see what their customers are saying and how it's impacting their business.
  • Visit their physical locations or purchase their products to get an in-person experience.
  • Attend industry trade shows or exhibitions where your competitors will be to learn more about their operations and strategies.
  • Use online tools to monitor their search rankings and digital marketing campaigns.

It's also important to identify their strengths and weaknesses . This analysis helps you understand how your business can leverage your strengths and capitalize on their weaknesses. It's also important to identify unique selling points that can give your business an edge in the market.

The competitive analysis also gives you an idea of how you should price your products . You can't price your products higher than your competition if they have better quality or if they offer added value to the customers in terms of their product or services. However, if you can identify areas where you can provide more value to your customers, you may be able to increase your prices.

Finally, review and update your competitor analysis regularly . The market is ever-changing, and new competitors may emerge. Keeping track of your competitors and the industry trends can help keep you ahead of the game.

Decide On Your Business Structure

When starting a groundnut oil business, one of the most important decisions you will need to make is choosing a business structure . The structure you choose will have an impact on your business's taxes, legal liability, and operations.

Some common business structures to consider include:

  • Sole Proprietorship: A business owned and operated by one person. This structure is simple to set up and provides complete control over the business, but the owner is personally liable for business debts and obligations.
  • Partnership: A business owned by two or more people who share profits and liabilities. Partnerships can be formed as general partnerships or limited partnerships. Each partner is personally liable for the partnership's debts and obligations.
  • Limited Liability Company (LLC): A business structure that combines the liability protection of a corporation with the tax benefits of a partnership. Owners are not personally liable for the LLC's debts and obligations and can choose how they are taxed.
  • Corporation: A legal entity that is separate from its owners. Corporations offer the greatest liability protection, but are subject to more regulations and taxes than other business structures.
  • Research and compare the advantages and disadvantages of each business structure before making a decision.
  • Consider consulting with a lawyer or accountant to help you choose the structure that is best for your business.
  • Remember that you can change your business structure as your business grows and evolves.

Once you have chosen a business structure, you will need to register your business with the appropriate state and local authorities. This may include obtaining a business license, registering for taxes, and filing other necessary paperwork.

Remember that choosing a business structure is an important decision that will have long-term implications for your groundnut oil business. Take the time to do your research, and consult with professionals if needed, to ensure that you make the best decision for your business.

Identify Your Funding Sources

Starting a groundnut oil business requires significant capital investment, which may be obtained from various sources. Identifying the right funding sources for your business is crucial, as it can impact the future growth and sustainability of your enterprise.

  • Personal funds: You may choose to invest some of your personal savings to start or grow your business. This may include your retirement savings, inheritance, or personal assets such as property or valuable possessions.
  • Bank loans: A bank loan is a common and traditional way to finance a business venture. You may apply for a small business loan or a line of credit from a mainstream or local bank. However, you may need to provide collateral or a business plan to support your loan application.
  • Angel Investors: You may consider approaching angel investors who may be interested in investing in your business in exchange for equity. Angel investors are individuals who typically invest their funds in start-up businesses with high potential for growth and profitability.
  • Venture Capital: Venture capitalists are companies that invest funds in start-ups or emerging businesses that have high growth potential. Unlike angel investors, venture capitalists seek to invest in businesses that have innovative ideas or products that have the potential to disrupt markets.
  • Crowdfunding: Crowdfunding has become popular in recent years, whereby businesses may raise funds from a large number of individuals through online platforms. This may include rewards-based crowdfunding or crowdfunding for equity. However, it requires effective marketing and promotion to attract investors to your business idea.
  • Research various funding sources to determine which ones are best suited to your business.
  • Create a business plan that outlines your funding requirements and repayment terms.
  • Prepare a solid pitch to persuade investors on the viability and profitability of your business.
  • Be prepared to negotiate with investors on the terms of investment.
  • Always seek professional advice before entering into any funding agreement.

Identifying the right funding sources for your groundnut oil business is crucial to achieving your business goals and objectives. You may need to combine different funding sources to meet your capital requirements, depending on the scale and scope of your business. Always seek professional advice before entering into any funding agreement to ensure the best outcome for your business.

Develop Your Marketing Strategy

Creating a comprehensive marketing strategy is an essential step for any business, including a groundnut oil business. It will help you define your target audience, communicate your value proposition, and generate sales. Here are some important steps to follow when developing your marketing strategy:

  • Identify your target audience: Determine who your ideal customers are, including their demographics, location, and their needs and preferences.
  • Determine your USP: Identify your unique selling proposition (USP) that sets you apart from your competitors. This can be a particular quality of your groundnut oil or a commitment to sustainability or fair trade practices.
  • Create a branding strategy: Develop a visual identity that reflects your brand values and communicates your USP. This includes your logo, packaging, website, and social media profiles.
  • Plan your digital marketing: Use social media, email marketing, and content marketing to promote your brand, build your audience, and generate leads.
  • Explore traditional marketing channels: Consider advertising in local newspapers, participating in food and trade shows, or sponsoring community events to market your groundnut oil business.
  • Develop a sales strategy: Determine how you will sell your products and interact with potential customers. This can include in-person sales, online sales, or partnering with retailers or distributors.
  • Measure your results: Track your marketing efforts and analyze their effectiveness. This will help you refine your strategy and improve your outreach and sales.
  • Use social media platforms to share recipes and cooking tips that use groundnut oil as an ingredient. This can help educate customers about your product and generate interest.
  • Consider offering discounts or promotions for first-time customers to encourage them to try your groundnut oil.
  • Partner with local restaurants or food businesses to showcase your groundnut oil as an ingredient in their dishes.

Identify Potential Suppliers

When starting a groundnut oil business, it's important to identify the right suppliers for the raw materials that you need. You can opt to go into the local markets and deal with farmers directly or work with suppliers who deal with farmers on wholesale basis. With the rise of e-commerce, it’s also possible to find suppliers online that can deliver nuts direct to your location.

One of the factors to consider when identifying potential suppliers is the quality of the raw materials they supply. While buying cheaper groundnuts may seem attractive in the short-term, in the long run, it may lead to low-quality oil, which will negatively affect the profitability of your business.

Another factor to consider is the quantity of nuts that you need for your business. Getting the right supplier ensures that you always have a regular supply of nuts for your business and that you do not run out when demand is high.

Important Tips

  • Look for suppliers that have a track record of delivering quality raw materials, and they have an excellent reputation in the market.
  • Develop a good working relationship with your suppliers. A good relationship paves the way for making negotiations about supplies and price easier.
  • Establish clear communication between you and your suppliers. This will ensure that you are getting the best deals available and avoid any unexpected surprises in your supplies.

Once you identify potential suppliers, it's essential to conduct a feasibility study on them to identify the pros and cons of each supplier. Consider factors such as their pricing, payment terms, reliability, and their proximity to your location. This will ensure that the relationship you develop is beneficial to both parties and that your business runs smoothly.

The success of your groundnut oil business largely depends on the quality of the raw materials you use. Therefore, take your time to identify potential suppliers and choose the one that best suits your business needs.

Plan Your Logistics

Once you have identified your target customers and suppliers, it is time to plan your logistics. Your logistics plan should incorporate how you will manage your inventory and distribute your groundnut oil products to your customers. Logistics management is a crucial aspect of your groundnut oil business.

You should consider the following factors when creating a logistics plan for your groundnut oil business:

  • Transportation: Determine the type of transportation you need to get the groundnut oil from your location to your customer. This could be through outsourcing to any reliable transport company.
  • Schedule: Develop a delivery schedule that is convenient for both you and your customers.
  • Inventory management: Establish a system for tracking your inventory, including raw materials, packaged products, and finished products.
  • Technology: Consider adopting technology that makes your logistics operations more efficient and effective, such as a customer ordering interface.

Tips for Planning Your Logistics

  • Consider outsourcing your logistics to a company that specializes in groundnut oil business. This could save you time and resources.
  • Use inventory management software to monitor your stock levels to avoid stockouts or overstocking.
  • Develop good relationships with reliable suppliers to ensure a consistent supply of groundnuts.

By taking these steps, you will develop a logistics plan that works for your groundnut oil business. By properly managing your inventory and logistics, you will be able to keep your customers happy and your business profitable.

Determine Your Staffing Needs

Once you have a clear idea of the structure, goals, and processes of your groundnut oil business, the next step is to determine your staffing needs. You may need labor for every aspect of the business from farming to packaging, distribution, and marketing.

Here are some important aspects of staffing to consider:

  • You need to determine the roles and responsibilities needed in your business.
  • Think about whether you need to hire full-time, part-time, or contract workers.
  • Consider the experience, qualifications, and skills you require for each job role.
  • Decide on the compensation rates, benefits, and perks you can provide for your employees.
  • Consider hiring seasonal workers to cater to the demands for harvesting and packaging during the peak season.
  • Outsourcing the marketing and sales may help you reduce costs and focus on core business functions.
  • Building a competent core team can help you in scaling up your business in the future.

Hiring and training staff is an important investment in your business’s success. To ensure you have the right team in place, carefully consider your business’s needs and budget, and bring in individuals who are passionate about the vision of the business and willing to contribute to its growth.

Starting a groundnut oil business is a lucrative venture, but it requires thorough planning and preparation. By following the nine steps outlined in this checklist, you can create a solid business plan that will help you launch and grow your business effectively.

Conducting market research, identifying your target customer, analyzing the competition, deciding on your business structure, and identifying your funding sources are all essential steps to take before starting your business. Additionally, developing your marketing strategy, identifying potential suppliers, planning your logistics, and determining your staffing needs will help ensure your business runs smoothly and successfully.

With a well-planned business strategy, your groundnut oil business has the potential to succeed and potentially expand into other products made from the extracted oil.

  • Conduct market research.
  • Identify your target customer.
  • Analyze the competition.
  • Decide on your business structure.
  • Identify your funding sources.
  • Develop your marketing strategy.
  • Identify potential suppliers.
  • Plan your logistics.
  • Determine your staffing needs.

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How to Start Ground Nut Oil Processing Business ?

Groundnut oil production business process, manufacturing process.

Cooking oil is an important and essential item in the FMCG sector. An average Indian consumes 15 Kg of oil in a year. Compared to other oils like sunflower oil, cottonseed oil, and soy oil, groundnut oil has more nutritional value.In addition to cooking, groundnut oil is used in the bakery and confectionery industry. Groundnut oil is used in soaps, salad oils, mayonnaise, etc.  Groundnut oil is expensive compared to other oils. Groundnut oil has good export potential making the Ground Nut Oil Processing Business is a profitable venture.

In India, groundnut is cultivated in 5.8 million hectares. Gujarat is the highest producer of groundnut oil in India. Groundnut seed contains 50-55% of the oil. It is one of the best oil seeds to extract oil from. High-quality groundnut is often exported leaving only second quality groundnut for Indian population. As groundnut oil is expensive, it is adulterated and sold by most oil mills. Therefore, pure groundnut oil has great demand these days. It has more vitamins, minerals, nutritional value and low levels of cholesterol. It is also suitable edible oil for Indian cooking.

Over 85% of the oil from the seed is extracted using the mechanical press. Groundnut undergoes many processes to produce most of its oil content. Following is the groundnut oil extraction process:

Storage → Cleaning → Dehulling → Grinding or rolling → Heating → Pressing → Refining  → Packaging.

1. Cleaning:- Clean the ground nuts properly to remove, dirt, sand, and spoil seeds. Use dry screening to remove all over or undersized seeds.

2. Dehulling:- The outer seed coat of groundnut is removed by a power-operated dehuller. Outer seed coat does not contain oil and hence is removed to avoid junk in oil cake.

3. Grinding or rolling:- Oil extraction is maximum with smaller particles. Grinding reduces the seed size. Rolling the seeds produces flakes. Large oil mills might use both grinding and rolling to extract maximum oil.

4. Heating:- Heating increases oil yield. It kills the enzymes that deteriorate oil quality.

5. Pressing:- Pressing the processed seeds using a lever press, mechanical expeller or hydraulic press separates the oil.

6. Refining:- The extracted oil is further refined to remove dust or dirt. Refining adds great value to the oil.

Read More: How to Start Lemongrass Oil Making Business ?

1. Perform Market Analysis:- In India, Gujarat holds the first position in producing groundnut oil . The state contributes to 9% in the groundnut production of the world and 25 to 30% of India. The country’s overall groundnut oil production depends on raw groundnut production.

2 Prepare a Project Report:- Create a project report with technical analysis, location details, manpower requirements and financial aspects. To create a project report, understand the production process, quality control required for raw materials, financial aspects like fixed cost projected sales revenue and working capital. A good project report can get you to finance from banks and financial institutions.

3.Arrange the Finance:- After creating the project report, arrange the finance. Try for funds from bank and venture capital firms.

4.Register the Business:- To establish a groundnut oil processing business, you will need a company registration with ROC, a Trade License , factory license, SSI Registration, BIS certification, Food Operator License, NOC from Pollution Control Board, fire license and AGMARK Certification Depending on your investing partners and investment pattern, form an LLP or Pvt. Ltd or Ltd Company.

After the registration, apply for MSME Udyog Aadhaar Registration,

5. Select a Working Location :- Oil milling requires a moderate covered space area depending on the size and quantity of your production. For small or medium scale production, 1000 Sq. Mar of covered space is required. Calculate the space required for production, storage, packaging, and official work. Ensure electricity supply and water.

6.Setup the Plant :- After obtaining the space, design a floor plan to install machinery, run electric cables, setup storage, etc. Visit some of the established units for an idea on best suitable plant setup.

7.Procure the Machinery :- Using the right machinery yields better quantity and quality of the oil. The main machinery required to groundnut oil production business are pre-cleaner, cans, and trays, Dust Blower, Hammer Mill, Screw conveyor, Roller crusher, Screw press, Filter press, Holding tank, Pumps, Neutralizer, Bleacher, Vacuum pump, Condenser, Deodorizer, Water treatment Set ad Boiler.

8.Hire Manpower :-Groundnut oil processing business requires labor. Manpower is also required for distribution and operating the machine.

9.Procure Raw Materials :-Shelled groundnut is the raw material required. Ensure regular availability of the raw material. Caustic soda and bleaching earth are also required for groundnut oil processing. Buy the most used material for packaging. There are a variety of packaging materials available like pouches, plastic bottles, and tins. Groundnut oil production business can be set up at any location in India as it is used throughout the country.

Many poor quality oils are available in the market for cheaper price. Gain trust in the quality of the oil you produce to establish yourself in the market. Pure groundnut oils are priced a little high. 2.5 Kg of groundnuts can produce 1 Liter of oil. So do not compromise the quality and priced affordably.

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