§1What this business is

Fresh olives are kept in cold storage, washed in a rotary washer, crushed in a hammer mill and kneaded in a malaxator. The paste goes through an oil expeller and a vertical centrifuge to separate the oil, which is stored in a heated tank and filled into bottles with induction-sealed caps. The DPR plans 30 MT of oil a year and counts 1 kg of oil from 6.21 kg of fresh olives.

Capacity: 30 MT of olive oil a year, 300 days of 10 hours. Planned at 55%, 65%, 75%, 90% and 100% of capacity in years 2–6 (16.5, 19.5, 22.5, 27 and 30 MT).

§2Is it right for you?

Who it is for

An olive growers' group or FPO near olive plantations that wants to press its own fruit.

Who it is not for

Anyone outside an olive-growing area — there will be no fruit to press.

Advantages

  • India imports almost all its olive oil
  • Small unit with 4 workers
  • High-value product for health-conscious buyers
  • Pomace left after pressing can be sold on

Drawbacks

  • Olives grow in only a few areas — the DPR names Jammu & Kashmir, Rajasthan, and parts of UP and Himachal Pradesh
  • Fruit must be pressed soon after harvest
  • Short harvest season limits working days
  • Competes with cheap imported oil

Skills you need

  • Judging olive ripeness and quick handling
  • Running a crusher, malaxator and centrifuge
  • Oil storage away from light and heat
  • Branding and selling a premium oil

Why difficulty 4/5: Easy machines, but fruit supply is limited to a few districts and the season is short.

§3Market

Who buys

  • Health-conscious households in cities
  • Hotels, restaurants and bakeries
  • Cosmetic and massage-oil makers

How it sells

  • Supermarkets and gourmet stores
  • Online marketplaces and own website
  • Direct supply to hotels and restaurants

Good to know

  • The DPR assumes an average selling price of ₹1,500 a kg of oil.

§4Raw material & machinery

ItemQtyCost
Cold storage (1,500 kg)1₹5 lakh
Rotary washing machine with screen1₹0.8 lakh
Hammer mill1₹1.4 lakh
Malaxator1₹0.9 lakh
Oil expeller1₹1.5 lakh
Vertical centrifuge machine1₹0.8 lakh
Oil storage tank with heater (100 litre)1₹0.3 lakh
Induction sealer1₹0.25 lakh
Bottle filling machine1₹0.75 lakh
Weighing balance1₹0.06 lakh
Accessories1₹0.5 lakh

From: NIFTEM-Thanjavur (IIFPT) PMFME model DPR — Olive Oil

  • Fresh olives₹120 a kg in the DPR; 17% oil recovery; 6.21 kg for 1 kg of oil
  • Bottles, caps and labelspacking material

From: NIFTEM-Thanjavur (IIFPT) PMFME model DPR — Olive Oil

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. FSSAI licence or registration
  4. Trade licence or factory permission from the local body
  5. Legal Metrology registration for packaged goods

We can do this registration for you

Start it in your state

Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.

§6Schemes & subsidies

At this size the project fits PMFME (35% credit-linked grant, up to ₹10 lakh) or PMEGP (manufacturing up to ₹50 lakh) — choose one subsidy; MUDRA or a CGTMSE-backed loan can cover the working capital.

§7Money

How the investment is worked out: Building 20 × 32 × 12 ft ₹5.18 L + plant and machinery ₹12.26 L + utilities and fittings ₹0.8 L + other fixed assets ₹0.9 L + pre-operative ₹0.90 L + contingencies ₹1.20 L + working capital margin ₹5.16 L = ₹26.40 L, as printed in the Project at a Glance and section 2.10.

Working capital: Margin money (25% of the working capital gap) ₹5.16 L, ₹6.10 L and ₹8.31 L in years 2–4; bank finance ₹15.48 L, ₹18.29 L and ₹24.94 L.

Year not printed on the DPR (the PMFME scheme began in 2020) — check current machinery prices.

How to prepare a loan file

§8Export potential

Export council / board: APEDA

  • The DPR prints no HS code — look up the exact code in the DGFT ITC-HS schedule before you quote to a foreign buyer.

§9Risks — where people fail

  • Not enough local fruit to run the plant
  • Oil quality loss if fruit waits too long
  • Import prices undercutting the local oil
  • Selling price well below the DPR's ₹1,500 a kg

§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 olive oil extraction unit 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

§12Watch

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

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Sources

  1. NIFTEM-Thanjavur (IIFPT) PMFME model DPR — Olive Oil

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