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A 2 TPD cold-pressed groundnut oil unit in Rajkot supplying unrefined filtered oil in 1L / 5L packs to local kirana stores and a D2C channel, using locally procured Gujarat groundnut.
Problem, solution, audience, domain
Confidence 82%Honest read on strengths and risks
Confidence 70%- Raw material sourced inside the Saurashtra groundnut belt (short haul)
- Cold-press positioning commands a premium over refined oil
- Low headcount — 4–6 people run a 2 TPD line
- Cold-press oil yield is materially lower than solvent extraction
- Shorter shelf life needs disciplined stock rotation
- No brand recall against established regional mills
- PMFME scheme support for micro food processing units
- Institutional supply to caterers and hostels
- Groundnut cake as a saleable by-product for cattle feed
- Groundnut price swings across the kharif cycle
- Adulteration in the informal market damaging category trust
- FSSAI labelling and testing non-compliance risk
Per litre of packed cold-pressed oil (base case)
Confidence 68%| Line item | Amount / L | Evidence |
|---|---|---|
| Selling price to kirana (indicative) | ₹210–240 | Model estimate |
| Groundnut input at assumed 32% oil yield | -₹150–175 | Assumption |
| Packaging (1L PET + label) | -₹12–16 | Model estimate |
| Power + machine running cost | -₹8–12 | Model estimate |
| Labour (allocated) | -₹10–14 | Model estimate |
| Less: oil cake by-product credit | +₹18–26 | Assumption |
| Indicative contribution / L | ₹25–55 | Model estimate |
Ranges, not point estimates: groundnut price and realised oil yield are the two variables that move this table most. Validate both with two local mandi quotes and one trial press before committing capital.
Conservative / base / optimistic, month 12
Confidence 66%| Driver | Conservative | Base | Optimistic |
|---|---|---|---|
| Capacity utilisation | 35% | 55% | 75% |
| Realised oil yield | 29% | 32% | 35% |
| Contribution / L | ₹25 | ₹40 | ₹55 |
| Monthly gross contribution | ₹5.3L | ₹13.2L | ₹25.0L |
Scenario inputs are model estimates over a 2 TPD nameplate capacity and 26 working days. They are planning bands, not forecasts.
India-native routes, with sources
Confidence 88%Edible oil manufacturing requires an FSSAI licence with product-specific standards and labelling. Apply through FoSCoS.
Source: foscos.fssai.gov.inFree online registration. Required to access most MSME schemes and delayed-payment protection.
Source: udyamregistration.gov.inCentral scheme offering credit-linked support to individual micro food processing units. Eligibility and subsidy caps are set by the scheme guidelines in force.
Source: pmfme.mofpi.gov.inEligible DPIIT-recognised private limited companies and LLPs may separately apply for tax exemption under Section 80-IAC, subject to current eligibility conditions and approval. DPIIT recognition alone does not automatically provide the exemption.
Source: startupindia.gov.inFirst 90 days
Confidence 69%- Week 1–4Licences, trial press, costing lockComplete FSSAI and Udyam filings, run a trial press to measure real oil yield, and rebuild the cost sheet on measured numbers.
- Week 5–8Seed 25 kirana stores in Rajkot cityWeekly route, batch-coded packs, one lab test report per batch displayed at point of sale.
- Week 9–12Add D2C repeat orders and cake off-takeWhatsApp reorder flow for households, and a fixed monthly contract for oil cake with a nearby dairy or feed buyer.
What this report assumed, and what to verify
Confidence 90%- AssumptionRealised oil yield of 32% on cold pressingVerify: Measure across three trial batches before finalising pricing.
- Assumption60:40 kirana-to-D2C volume splitVerify: Re-check after the first 8 weeks of actual orders.
- AssumptionOil cake sells reliably every monthVerify: Get one written off-take commitment before counting the credit.
- AssumptionGroundnut procurement price stays inside its recent rangeVerify: Track mandi prices weekly; the model breaks outside the range.
What kills this in year one
Confidence 72%- Input price shock — groundnut is the single largest cost line and moves seasonally.
- Yield shortfall against the assumed 32% wipes out contribution fast.
- Labelling or testing non-compliance can stop despatch entirely.
This is an AI-generated research draft, not financial, legal, tax or investment advice. Figures tagged as model estimates or assumptions are planning ranges, not verified facts, and scheme or licensing rules change over time. Verify all costs with local quotations, and confirm eligibility and compliance with a qualified chartered accountant, company secretary or the relevant government authority before committing capital. Sources were last checked on 12 July 2026.
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