§1What this business is

You buy cast and forged parts, shafts, sheets and 10 HP electric motors, then machine, weld, assemble and test oil expellers (4-bolt to 12-bolt sizes). Buyers are oil mills, agro-processing units and dealers of food-processing machinery. The KVIC profile names Indian Standards for expellers (IS 5223, IS 4596, IS 5224, IS 10341).

Capacity: Output worth ₹66.06 lakh a year at cost of production (full capacity); the profile does not give the number of machines.

§2Is it right for you?

Who it is for

A machinist or fabricator who knows oil mills and their machines.

Who it is not for

Someone with no workshop or machine-tool experience.

Advantages

  • Every oil mill and ghani unit needs expellers and spare parts
  • Spare parts and repairs give steady side income
  • Indian Standards exist, so a good product can be proven
  • The KVIC profile notes an export market as well

Drawbacks

  • Thin margin: about ₹5 lakh surplus on ₹72 lakh sales
  • Large working capital for castings, motors and steel
  • Established expeller makers already dominate the trade
  • Needs skilled machinists and a proper workshop

Skills you need

  • Lathe and shaping work
  • Heat treatment and welding
  • Testing to IS standards
  • Selling to oil mills and dealers

Why difficulty 4/5: Needs machining skill, big working capital and buyers' trust in a new make.

§3Market

Who buys

  • Oil mills and ghani units
  • Food and agro-based processing industries
  • Dealers of agro-processing machinery

How it sells

  • Direct sale to mill owners
  • Machinery dealers and trade fairs
  • Spare-part and repair orders

Good to know

  • The profile links expeller demand to rising demand for edible and non-edible oils.
  • Expellers replaced the traditional ghani because they leave less oil in the cake.

§4Raw material & machinery

ItemQtyCost
Centre lathes 2400 mm, 2000 mm and 1400 mm with motors and accessories1 set—
Shaping machine 600 mm stroke1—
Pillar drilling machine 20 mm1—
Gas cutting equipment1 set—
Muffle-type furnace and quenching tank1 set—
Welding transformer 400 A1—
Power hacksaw 200 mm and double-ended bench grinder 200 mm1 each—
Testing machine and equipment1 set—
All equipment together (KVIC total)1 lot₹8,78,000

From: KVIC Project Profile — Oil Crusher / Expeller (PMEGP)

  • Cast and forged parts, plates, tubes, pipes, shafts, bars, sheets and sectionsraw material ₹52.80 lakh a year at full capacity
  • Electric motors (10 HP), starters, capacitors, switchesbought out, not made in the unit
  • Oil, grease and consumablesworkshop consumables

From: KVIC Project Profile — Oil Crusher / Expeller (PMEGP)

Suppliers in Building Business Bazaar

Oil Expeller & Parts Manufacturing Cluster, Ludhiana · Ludhiana →

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. State Pollution Control Board consent, if your state requires it for this activity
  4. BIS certification if you choose to sell under an IS mark

We can do this registration for you

§6Schemes & subsidies

PMEGP (the profile was made for it), MUDRA up to ₹20 lakh, CGTMSE for a collateral-free loan, Stand-Up India for SC/ST or women founders.

§7Money

How the investment is worked out: KVIC profile: equipment ₹8.78 L (centre lathes, shaping machine, pillar drill, gas cutting set, muffle furnace, 400 A welding transformer, power hacksaw, quenching tank, bench grinder, testing equipment) + working capital ₹11.00 L = ₹19.78 L. Land own; no work-shed cost shown.

Working capital: Working capital ₹11.00 lakh — more than the machinery; raw material alone is ₹52.80 lakh a year.

Year not printed on the KVIC profile — check current machinery prices.

How to prepare a loan file

§8Export potential

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

8479.20Machinery for the extraction or preparation of animal or fixed vegetable fats or oils

Export council / board: EEPC India

  • The KVIC profile says oil expellers have a very good export market.
  • HS heading from the ITC(HS) 2022 schedule; confirm the 8-digit line with DGFT or your customs broker.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Steel and casting price swings
  • Slow payment from mill owners
  • Warranty claims from poor machining
  • Seasonal demand tied to oilseed harvests

§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 oil expeller manufacturing 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 registration), 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 Oil Expeller Manufacturing?

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

Get a DPR / loan file made

Sources

  1. KVIC Project Profile — Oil Crusher / Expeller (PMEGP)

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