§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
| Item | Qty | Cost |
|---|---|---|
| Openers (decorticators) | 1 | ₹0.50 lakh |
| Conveyors | 1 | ₹0.75 lakh |
| Sorting / grading machine | 1 | ₹1.50 lakh |
| Testing and packing equipment | lot | ₹0.25 lakh |
| Utility equipment | lot | ₹0.25 lakh |
| Installation, taxes and transport | lot | ₹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
§5Licences & registration
- Udyam registration
- GST
- FSSAI licence
- Mandi licence for buying
- APEDA registration and IEC for exports
§6Schemes & subsidies
- AIFCentralUnclear3% interest subvention, up to ₹2 crore
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
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.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
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.
- 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.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
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.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.
