How Much Does It Cost to Set up an Oil Mill in India?

by Om engineering Works Convert Ideas Into Machines

For starting a groundnut oil mill plant setup cost can vary greatly depending on several factors, including the size and scale of the operation, the location, the type of equipment and machinery used, and more.

A small-scale groundnut oil production plant may cost anywhere between 7,00,000₹ and 25,00,0000₹, while a large-scale operation can cost crores or more.

It's important to note that in addition to the initial investment, there are ongoing operating costs, such as labor, utilities, maintenance, and supplies, which must be taken into account when determining the overall cost of starting a groundnut oil plant.

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Peanuts contain 40-45% oil in their kernels, which is widely used as an edible oil globally due to its nutritious content and lack of cholesterol issues. This makes it a favored ingredient for cooking.

In addition to cooking, groundnut oil plays a crucial role in the bakery and confectionery industries. It serves as a substitute for oils such as olive oil, and is utilized in various products including soaps, salad dressings, mayonnaise, margarine and other cooking oils.

Estimate cost of setting up a small oil mill plant?

When determining the total cost of operating an oil mill plant, there are several factors to take into account in running an oil extraction plant business.

Area/Land cost : Area cost refers to the cost associated with a specific location or region. This can include things like land costs, labor costs, and the cost of utilities and other resources. In the context of an oil mill plant, the area cost will be an important factor in determining the overall cost of setting up and operating the business. Factors such as local real estate prices, labor rates, and the cost of utilities will all play a role in determining the area cost for a particular location.

Cost of oil mill machinery : To extract peanut oil from groundnut oil seeds and nuts, oil mill machinery is necessary. The following are the machines required to start an oil manufacturing business, but their specific use depends on each stage of the equipment process:

Groundnut Decorticator Machine : A Groundnut decorticator machine is a piece of equipment used in the oil milling industry to separate the shell from the kernels of groundnuts. This machine is essential for the oil extraction process as it helps to increase the overall yield of oil by removing the hard outer shell and exposing the oil-rich kernels. The type and size of the decorticator machine will depend on the scale of the operation and the specific needs of the business. The cost of a groundnut decorticator machine can vary greatly depending on the capacity and specifications.

Cooking machine : Cooking Equipment: A cooker is a crucial piece of equipment for heating peanuts to a specific temperature. Heating seeds and nuts, like peanuts, rapeseed, sesame and sunflower seeds, can maximize oil yield. Some cookers are powered by steam while others have electric boilers as an alternative for convenience.

Oil Expeller Machine : Screw oil expellers are commonly used by many oil mills as the primary oil extraction equipment in India. Over time, the oil press has undergone significant performance upgrades. It extracts oil from raw materials through mechanical pressing to ensure that no additives are present in the crude oil

Oil Filter Press : After the oil is extracted from seeds and nuts, it must undergo a refining process. This also applies to filters. Large industries use edible oil refinery plants, but for small-scale operations, an oil filter presses machine is sufficient. Additional expenses may arise from substances that enhance oil quality further.

Manpower cost to run oil mill plant : The manpower cost to run an oil mill plant will vary depending on several factors, including:

Number of employees: The cost will increase with the number of employees required to run the plant.
Skill level: Skilled workers will typically command higher salaries compared to unskilled laborers.
Location: Labor costs can vary greatly depending on the location of the oil mill plant, with wages being higher in some areas compared to others.
Working hours: The number of working hours will impact the cost, with full-time workers typically costing more than part-time workers.
Benefits: The cost of providing benefits such as health insurance, paid time off, and retirement plans can also impact the overall manpower cost.

It is recommended to carefully consider the labor needs of the oil mill plant and budget accordingly to ensure that the business has the necessary manpower to operate effectively.

Watch a Video on Groundnut Oil Mill Plant: Setup Cost and Production Overview