How To Start Soybean Oil Manufacturing Business

What is soybean oil 

Soybean oil is an important edible cooking oil worldwide. It is a vegetable oil. In general, it is produced from the seeds. Here in this article, here I will give you idea about how to start the soybean oil manufacturing business.

When you are starting a soybean oil production business, you should keep in mind the location plays a very important role. You must establish the unit near the soybean growing areas. Because you must guarantee the supply of soybeans in your factory without spending much transportation cost. Otherwise, you will not be able to obtain maximum profitability from the business.

Some of the main soy producing states in India are Maharashtra, Madhya Pradesh, Rajasthan, Andhra Pradesh, Karnataka and Gujarat. Our country represents 3.95% of world production according to Statistic. India is the second largest soybean producer in Asia.

Whereas some of the main soy producing countries are Uruguay, Bolivia, Ukraine, Canada, India and China.

Soybean oil production business plan

Method to produce soybean oil

Commercially, there are two methods to produce soybean oil. You can produce the oil either by pressing or by a solvent extraction method. The process is complicated and the oil yield is much lower. Basically this method is a mechanical process.

On the other hand, solvent extraction is a chemical process. Ensures higher oil yield. Therefore, we strongly recommend following the solvent extraction process.

In addition, you can start the soybean oil production unit in two ways. One is just oil production. And it will send the oil to other oil refinery companies. Basically, you can start this type of unit with a moderate capital investment.

The other way you can start the unit along with a refinery configuration. However, this type of unit operates on a large scale and requires a substantial capital investment.

Potential of the soybean oil market

Basically, the oil has omega-3 fatty acids, polyunsaturated fats and low saturated fats. Therefore, it is popular as one of the healthiest cooking oils. It currently represents the second largest edible oil (after palm oil) consumed in the world, and the United States and China represent the largest markets.

Most of its global demand currently comes from the food industry. Within the food industry, most of the demand is for cooking and as a condiment in salads. In addition, the oil finds applications in industrial paints, lubricants, solvents, cleaners, adhesives, oleochemicals, biodiesel, bio-composites, etc.

Due to its high content of unsaturated fat, it undergoes early oxidation when exposed to air, light or moisture, which makes it suitable for printing inks and oil paint formulations. According to industry experts, the demand for soybean oil to grow at an annual compound rate of about 4% over the next five years.

Licenses and permits for the soybean oil production unit

Basically, the specific licensing requirement depends mainly on the finished product. First, determine if you want to sell solvent-extracted oil or refined soybean oil. Also, check your state law for more confirmation. Here, we have compiled some of the basic requirements.

First, register your business and prepare the MOA.

Request MSME Udyog Aadhaar online registration

Obtain the NOC from the Pollution Control Board

Request commercial electricity connection and water supply.

Request the factory license.

In addition, apply for the FSSAI license. You must maintain the standard in accordance with the PFA Act.

Finally, verify the next fiscal obligations of the company.

Installation and machinery of the soybean oil production plant

To establish the plant, the main requirement is land. If you already have a space for the manufacturing operation, then that’s fine. Otherwise, you can secure a space in any industrial area for rent. Generally, a constructed area of ​​2000 square feet is sufficient for small-scale production. Some of the most important machines are

Solvent Extraction Plant
Basically, a solvent extraction plant contains

Seed cleaner
Suction system
Roller Grinding Accessory
Hydraulic system
Rotary Air Lock
Feed bin
Micro level indicators
Ascending hoppers
Trash can
Bulk flow conveyor
Rotary Air Lock
Dust collector
Horizontal tubular condenser
Sealed Devic
Steam cooler,
Water solvent separator
Worn Water Deolventizer
Oil extraction column
Oil retention tank
Vacuum equipment
Final steam absorber
Heat exchangers
Final Vertical Stripper

Soybean oil mill project cost India

Total machinery cost will be approx 5 to 7 lacs, and other basic requirements as current, water, space labour, Weichel etc. will cost extra as 3 to 5 lacs approx. Therefore total cost for small unit will be Rs.1o lac to 12 lacs approx.

Soybean oil extraction process by solvent extraction

The first step is to clean the soybeans. Then, dry the seeds and husk them before extracting the oil. You have to remove the soy shells because they absorb the oil and give a lower yield. However, you can peel it by splitting the soybeans. Finally, separate the hulls and mechanically ground soybeans. In addition, you can use magnets to separate any iron particles from soy.

Soybeans are also heated to approximately 75 ° C to coagulate soy proteins to facilitate oil extraction. To extract the oil, cut the soybeans into flakes. Put them in percolation extractors and immerse them with a solvent, usually hexane.

Counter flow is used as an extraction system because it provides the best performance. After removing hexane, the flakes extracted only contain about 1% of soybean oil and are used as cattle meal or to produce food products such as soy protein. Finally, separate the hexane from the soybean oil in the evaporators. And recover the evaporated hexane and return to the extraction process. Now, raw soybean oil without hexane is ready to go to the refineries.

Raw materials for the manufacture of soybean oil

The most important raw material is soybean. In addition, you must purchase hexane and other various chemicals. In addition to that, you must organize the packing materials for bulk packing.

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