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8 Steps To Start a Small Edible Oil Manufacturing Business

Vegetable edible oil refers to oil obtained from oilseeds and nuts through an extraction process. Since their is an improvement in people’s living standards, the consumption of edible oils is also increasing day by day. Therefore, the extraction of vegetable oil is a profitable venture that in most cases rewards manufacturers with good profitable returns.

Vegetable oil is extracted from various oil seeds & nuts such as mustard / canola / rapeseed, copra / coconut, soya bean / soybean, peanut / groundnut, sunflower, cottonseed, sesame, neem, palm fruit & palm kernel, niger, sheanuts, flaxseed / linseed, etc through a mechanical pressing process. Non-edible oil is extracted from jatrpoha seed, castor seed, etc. People use cooking oils for various purposes including Cooking / Household, Animal feed, Furniture polish and conditioner, Leather preservative / Soap making, Hair moisturizer, etc. Nowadays, vegetable oil is also used as biodiesel fuel.

edible oil manufacturing plant

So if you want to start a small business or self-employment business, a cooking oil production business may be the best option to consider.

The following steps you need to set up an edible oil manufacturing business:

Step 1. Learn more about the business

Step 2. Craft your business plan

Before choosing a place for your edible oil processing plant, you have to consider the availability of raw materials, workforce, transport & road infrastructure, electricity availability, target market, etc. Oil Manufacturing plant location should be close to the target market and raw material sources which will reduce supply and transportation costs.

Having a good business plan is like to have a compass before going on an ocean trip. This gives you insights into everything you will need to establish and run a business successfully.

Step 3. Select your source of raw materials

You have two options to obtain the raw materials needed for the vegetable oil extraction plant. You can buy oil seeds from the supplier or have your own farm for the cultivation of oil seeds & nuts.

Step 4. Find a good plant location

The location of your business is another very important factor that can make your business more successful. It’s best to find the location which is close to your source of raw materials. For example, if you will be going into mustard oil production, you should locate your extraction plant nearby mustard oil plantation or suppliers. This will reduce transportation costs which will add to your profits.

Step 5. Get the funds

You will need money for buying land, machinery, plant construction, raw materials, working capital, etc. You will easily attract investors or get loans from banks or other lending institutions if you have a detailed oil mill project report which reflects that your business is profitable, sustainable and you have good knowledge about it.

Step 6. Choose suitable manufacturer and machines

We – GOYUM are leading manufacturer and exporter of cooking oil processing line and already have experience and expertise of more than 50 years in edible oil industry. We have exported to more than 63 Countries worldwide.

We provide a complete oil extraction plant on turnkey basis with excellent after sales support. Our advanced technology plants are reliable, robust, excellent in quality, reasonably priced, works continuously with efficiency.

Step 7. Hire employees

By using different hiring mediums, you can hire employees as per your requirements for your oil production plant.

You can also use your personal contacts to hire employees / workforce for effective running of your edible oil processing plant.

Step 8. Plan the packaging and distribution

The oil is collected in the filtered oil storage tank and then it is tested, if it’s found up to the mark and has passed all the parameters set by your country government, the oil is taken to the packing stage for packing and distribution.

When the oilseeds are pressed, we get oil & oilcake. Oil Cakes have some quantity of oil in them and they are used to make animal feeds which are normally packed in bags.

Goyum Screw Press is engaged in designing, manufacturing, exporting, installation & commissioning and after-sales support for edible & non-edible oil mill industry.

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