Setting up an edible oil mill plant is a profitable and sustainable business that caters to the increasing demand for healthy edible oils. Whether you are a small entrepreneur or a large investor, the following information will help you understand how to set up a plant with capacity-wise planning, cost structure, machinery, space requirements, and licensing needs.
Choose Capacity : Select your production capacity based on your budget, target market, and available resources.
Select Oilseeds : Common options include: mustard, soybean, groundnut (peanut), sunflower, sesame, cottonseed, etc.
Site Selection : Choose an industrial area with easy access to raw materials, transportation, and water/electricity supply.
Acquire Machinery : Procure machinery tailored to your production capacity (details below).
Obtain Licenses : Ensure legal compliance by obtaining the required licenses and registrations.
Install & Commission Plant : Work with technical consultants for installation, staff hiring, and production trials.
Seed Cleaning Machine
Oil Expeller / Screw Press Machine
Boiler (for heating)
Filter Press or Oil Filter Machine
Neutralizer (for refining)
Storage Tank
Packaging Machine
Electrical Panel & Wiring
Conveyor Belts (optional)
Capacity Built-up Area Land Requirement
1 TPD (Ton Per Day) 500–800 sq. ft 1,000–2,000 sq. ft
5 TPD 1,500–2,000 sq. ft 3,000–5,000 sq. ft
10 TPD 3,000–4,000 sq. ft 6,000–8,000 sq. ft
20 TPD 5,000–6,000 sq. ft 10,000–12,000 sq. ft
Note: Area may vary depending on layout and automation.
Capacity Estimated Total Cost (INR) Notes
1 TPD ₹10 – ₹15 Lakhs Small scale, manual operation
5 TPD ₹30 – ₹40 Lakhs Semi-automatic
10 TPD ₹60 – ₹75 Lakhs Semi-automatic with packaging
20 TPD ₹1.2 – ₹1.5 Crores Fully automatic
Includes: machinery, installation, civil work, utilities, initial working capital.
Company Registration – Private Limited/LLP/Proprietorship
FSSAI License – Mandatory for all food businesses
GST Registration
Factory License – As per local Factories Act
Trade License – From local municipal authority
Pollution Control Certificate – From State Pollution Control Board
BIS Certification (optional) – For branded oil
Weights & Measures Certification – For packing equipment
Fire Safety Certificate
Increasing demand for quality oils
High return on investment
Export potential
Government subsidies for agro-based industries (check local schemes)
If you're interested in starting your own edible oil mill plant, contact us for a Bank & NBFC finance, custom project report, equipment consultation, or site layout planning.