§1What this business is

Groundnut pods are checked, de-stoned, shelled and passed through magnets and sorting. Kernels are then graded by size ('count' — kernels per ounce), aspirated, colour-sorted, sampled for the lab and packed in 50 kg bags. About 55% of pod weight comes out as HPS kernels. Buyers are chikki, farsan, salted-peanut, chocolate and peanut-butter makers, and exporters.

Capacity: 1,350 tonnes a year; HPS recovery from pods 55%.

§2Is it right for you?

Who it is for

A trader in a groundnut belt (Saurashtra, Rajasthan, Andhra) who knows counts and grades.

Who it is not for

Someone who cannot judge kernel quality or bear crop-price swings.

Advantages

  • India is the world's second-largest groundnut grower (profile)
  • Low machinery cost (₹3.50 L)
  • Many bulk buyers: snack, sweet and peanut-butter makers

Drawbacks

  • Margin is only 2–3% of sales
  • Large money needed at harvest to buy pods
  • Price depends on count, colour and aflatoxin tests

Skills you need

  • Grading by count
  • Moisture and aflatoxin control
  • Mandi buying through brokers
  • Export paperwork

Why difficulty 3/5: Simple machines, but it is a trading business with thin margins.

§3Market

Who buys

  • Chikki and farsan makers
  • Salted-peanut and snack processors
  • Chocolate and peanut-butter makers
  • Exporters

How it sells

  • Agents selling to Rajkot, Bharuch, Ahmedabad and other markets
  • Export houses

Good to know

  • Kernels are traded by count — e.g. small 60–80, medium 40–60, large 30–40, very large 20–30 kernels per ounce.
  • Gujarat (Saurashtra) is the largest and best-quality producing area (profile).

§4Raw material & machinery

ItemQtyCost
Openers (decorticators)1₹0.50 lakh
Conveyors1₹0.75 lakh
Sorting / grading machine1₹1.50 lakh
Testing and packing equipmentlot₹0.25 lakh
Utility equipmentlot₹0.25 lakh
Installation, taxes and transportlot₹0.25 lakh

From: SIDBI Stand-Up Mitra project profile — HPS Groundnut (2018) — private guide — confirm locally

  • Groundnut podssample units bought from Mangrol, Keshod, Junagadh and Kutch through brokers; 55% comes out as HPS kernels
  • 50 kg gunny bagsavailable locally

From: SIDBI Stand-Up Mitra project profile — HPS Groundnut (2018) — private guide — confirm locally

In our raw material database

Groundnut (peanut) →

§5Licences & registration

  1. Udyam registration
  2. GST
  3. FSSAI licence
  4. Mandi licence for buying
  5. APEDA registration and IEC for exports

We can do this registration for you

§6Schemes & subsidies

AIF (post-harvest processing); PMFME for micro food units; PMEGP fits (₹46.41 L, under the ₹50 L limit); CGTMSE for a loan without collateral; Stand-Up India for SC/ST and women founders (loans ₹10 L–₹1 crore).

§7Money

How the investment is worked out: Land ₹2 L + building ₹3 L + plant & machinery ₹3.50 L + furniture ₹1 L + preliminary ₹0.35 L + working-capital margin ₹36.56 L = ₹46.41 L.

Working capital: Working capital ₹36.56 L — inventories ₹18.28 L, receivables ₹9.14 L, overheads ₹9.14 L; bank ₹20.57 L.

Stand-Up Mitra profile from 2018 — machinery and material prices will be higher now.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

1202.42Ground-nuts, not roasted or otherwise cooked — shelled, whether or not broken

Export council / board: APEDA

  • Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.
  • Groundnut exports need aflatoxin testing to the buying country's limits.

§9Risks — where people fail

  • Crop price swings
  • Aflatoxin rejection
  • Storage pests
  • Thin margin

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working hps groundnut (hand-picked selected kernels) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start HPS Groundnut (Hand-Picked Selected Kernels)?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. SIDBI Stand-Up Mitra project profile — HPS Groundnut (2018)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.