Project Report for Kachi Ghani Oil Mill
Kachi Ghani oil manufacturing is a traditional cold-pressed oil processing business that extracts edible oil from oilseeds such as mustard, sesame, and groundnut using low-temperature mechanical pressing. A professionally prepared project report helps evaluate machinery, raw material sourcing, production capacity, investment, and financial feasibility. Get a Completely Custom Bankable Project Report by Sharda Associates—Rs. 2,999 onwards, delivered in 24-48 hrs, backed by 45,500+ CA-certified reports
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What Is A Kachi Ghani Oil Mill?
A Kachi Ghani oil mill is a food processing unit that produces cold-pressed edible oil by extracting oil from oilseeds such as mustard, sesame, groundnut, sunflower, and other approved seeds using a low-temperature mechanical pressing process. The objective is to retain the oil’s natural aroma, flavor, and nutritional characteristics without extensive refining.
The production process begins with cleaning and grading the oilseeds to remove dust, stones, and other impurities. The seeds are then fed into a Kachi Ghani expeller or traditional ghani system, where slow mechanical pressure extracts the oil. The extracted oil is allowed to settle and is usually filtered before being packed in food-grade containers for sale.
Unlike large edible oil refineries, a Kachi Ghani oil mill focuses on minimally processed, cold-pressed oils that are marketed as premium products for households, retail stores, supermarkets, and health-conscious consumers. The business can also generate additional income by selling the oil cake, a valuable by-product used as cattle feed, organic fertilizer, or industrial raw material.
A successful Kachi Ghani oil mill depends on high-quality oilseed procurement, hygienic processing, efficient machinery, attractive packaging, regulatory compliance, and strong distribution channels. Before establishing the unit, a detailed project report should evaluate production capacity, machinery, investment, working capital, market demand, and expected financial returns.
Manufacturing Process
- Seed Selection – High-quality, mature, contaminant-free seeds are selected — commonly mustard, groundnut, sesame, or coconut.
- Cleaning & Sorting – Seeds are cleaned to remove dust, dirt, and stones, and sorted to remove damaged or discoloured seeds.
- Drying (if needed) – Some seed batches are dried to reduce moisture, which improves extraction efficiency and oil shelf life.
- Grinding & Pressing – Seeds are crushed in the ghani — a wooden or steel press — at room temperature, which preserves the oil’s natural nutrients, flavour, and aroma.
- Filtering – The extracted oil is filtered to remove leftover solids, then left to settle so any remaining sediment separates out.
- Packaging – Filtered oil is packed into glass bottles or food-grade containers, labelled and sealed to prevent leakage and preserve quality.
Raw Materials Required
- Mustard, groundnut, sesame, or coconut seeds (depending on the oil you’re producing) — sourced from local mandis or seed traders
- Filtration material for the settling and clarification stage
- Packaging material — glass bottles or food-grade containers, along with labels
Machinery Required
- Ghani press (wooden-body or steel-body cold press machine)
- Seed cleaning and sorting equipment
- Filtration and settling tanks
- Bottling and packing equipment
Basic entry-level machines are single-chamber and manually fed; higher-capacity models use multiple chambers or hydraulic pressing systems for continuous operation.
Estimated Project Cost
Machinery cost depends mainly on hourly processing capacity:
Scale | Machinery Cost (Approx.) | Typical Capacity |
Entry-level, single-chamber press | ₹50,000 – ₹1,60,000 | Roughly 7–20 kg/hour |
Mid-size, higher-capacity press | ₹2,00,000 – ₹4,00,000 | Roughly 30 kg/hour and above |
Commercial multi-chamber setup | ₹4,00,000 and above | Higher continuous throughput |
Oil output typically runs around 30–33% by weight for mustard seed in a cold-press process, which is a useful figure for estimating how much seed you’ll need for a target oil output. Total project cost should also include seed storage, shed setup, and working capital for the first few production cycles. A project report is built around your actual machinery quotation and target capacity.
Space, Power & Manpower Requirements
- Space – An entry-level unit can operate in a small shed with space for the press, seed storage, and bottling area. Larger, multi-chamber setups need proportionally more space for seed stock and finished goods.
- Power – Entry-level machines typically run on a 2 HP motor; higher-capacity presses need 5–10 HP or more depending on throughput.
- Manpower – A small unit can often run with 2–4 people covering feeding, pressing, filtering, and packing.
These are general planning figures — actual requirements should be confirmed against your specific machine and capacity plan.
Market Demand & Business Opportunities
- Consumer demand for Kachi Ghani (cold-pressed) mustard oil has been growing as more buyers look for natural, less-processed cooking oil over refined alternatives.
- Health positioning matters here — cold-pressed oil retains natural antioxidants and aroma, which is the core selling point over heat-processed refined oil.
- Local and direct-to-consumer sale works well for smaller Kachi Ghani units, since freshness and traditional process are easier to communicate to a nearby customer base than to a distant one.
- B2B and gifting packs are a growing niche, as some brands position cold-pressed oils as a premium product for gifting or specialty retail.
Profit Margin & Financial Potential
Kachi Ghani oil generally commands a higher price per litre than refined oil, since the slower cold-press method and lower output-per-hour make it a premium product rather than a mass-market commodity. Margins depend on your seed cost, oil recovery rate (typically 30–33% for mustard), and whether you sell in bulk or through your own retail/branded packaging.
A project report should model profitability using your actual seed cost and expected selling price, since both vary by region and by how directly you reach your end customer.
Government Schemes / Subsidies
Kachi Ghani oil milling, being a food processing activity, can be eligible for support under central schemes for the sector:
- PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises) – Offers a 35% credit-linked capital subsidy, capped at ₹10 lakh per unit, for micro food processing units, which fits well with the scale most Kachi Ghani units start at.
- PMEGP – A broader scheme for new micro and small enterprises, used by some first-time entrepreneurs whose unit doesn’t fit PMFME criteria.
Eligibility depends on your unit’s scale, category, and location, so it’s worth confirming which scheme applies before the project report is finalised.
Why Is A Project Report Required For A Bank Loan?
A bank cannot sanction a loan on a verbal plan alone. A project report gives the bank a structured, verifiable picture of:
- The actual project cost and where that investment is going
- Expected oil output and revenue based on a realistic seed-to-oil recovery rate
- Whether the promoter’s own contribution and loan amount genuinely match what the unit needs
- How the business will repay the loan given seed cost fluctuations
A CA-certified report also helps the bank cross-check your application against any subsidy scheme you’re applying under, keeping the numbers consistent across your loan file.
Documents Required
Document | Purpose |
CA-certified project report | Explains cost, revenue, and repayment capacity to the bank |
CMA data | Used for term loan and working capital assessment |
KYC documents of applicant | Identity and address verification |
Proof of premises | Ownership papers or rental agreement for the unit |
Machinery quotations | Confirms machinery cost used in the project report |
FSSAI license | Mandatory for manufacturing and selling edible oil |
Udyam/MSME registration | Needed for MSME loan and applicable subsidy schemes |
Project Snapshot
Detail | Information |
Business Type | Kachi Ghani (Cold-Press) Oil Mill |
Plant Capacity | 7 kg/hour (entry-level) to commercial multi-chamber throughput |
Investment | ₹50,000 to ₹4,00,000+ (depending on scale) |
Space Required | Small shed for entry-level units; more space for larger multi-chamber setups |
Power Required | 2 HP (entry-level) to 5–10 HP+ (higher-capacity presses) |
Raw Materials | Mustard, groundnut, sesame, or coconut seeds |
Machinery | Ghani press, seed cleaning/sorting equipment, filtration tanks, bottling/packing setup |
Loan Schemes | PMEGP, PMFME, standard MSME term loan |
Subsidy | Up to 35% credit-linked subsidy under PMFME (capped at ₹10 lakh, subject to eligibility) |
Report Prepared By | Sharda Associates (CA-certified) |
Frequently Asked Questions
Kachi Ghani oil is extracted using a slow, low-temperature press, which retains more natural nutrients, aroma, and antioxidants. Refined oil goes through heat-based expeller extraction and further chemical refining, producing a more neutral-tasting oil at higher volume.
Cold-pressed mustard typically yields around 30–33% oil by weight, which is a useful starting point for estimating output against your seed input.
Yes. Manufacturing and selling edible oil requires an FSSAI license, with the category depending on your production capacity.
Many small units start with a single-chamber press and add filtration and bottling equipment around it, scaling up to multiple presses as demand grows.
Yes, provided it meets PMFME's micro food processing unit criteria — this scheme's ₹10 lakh subsidy cap fits well with the scale most Kachi Ghani units start at.
Typically 2–3 working days once your machinery quotation and target capacity are shared with the consultant preparing the report.
Banks typically ask for CMA data, KYC documents, proof of premises, machinery quotations, FSSAI license, and Udyam registration alongside the project report.
Seed cost and oil recovery rate are the biggest factors, along with whether you sell in bulk or through your own branded, direct-to-consumer packaging.