Wood-Pressed Oil Mill (Lakdi Ghani) Business
लकड़ी घानी तेल मिल व्यवसाय · लाकडी घाणा तेल व्यवसाय
Press groundnut, sesame, mustard or coconut oil in a wooden ghani in front of customers and sell it at a premium over refined oil.
Investment
₹7.5 lakh
Profit a month*
₹39,000
- Space
- 500 sq ft
- Staff
- 2 + you
*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.
A wood-pressed oil mill crushes oilseeds slowly in a motor-driven wooden ghani, lets the oil settle, filters it and sells it in bottles and tins, often from a shop where buyers can watch the pressing. Customers pay well above the refined-oil price because the oil is unrefined and made in front of them. The leftover oil cake is sold as cattle feed. It suits someone with a shop in a residential area who can build trust and repeat buyers. Profit comes from the retail premium, not from volume. The hard parts are oilseed price swings, a slow build-up of regular customers, short shelf life compared with refined oil, and keeping quality honest.
Skills needed: No formal qualification. You must judge seed quality and moisture, keep the unit very clean, and explain the product to customers.
Profit calculator
Change the numbers to match your town45 litre/day: Wood-pressed groundnut oil, bottled
Total investment
₹7.49 lakh
Your own money
₹74,867
Subsidy
—
Bank loan
₹6.74 lakh
Mudra Tarun
A typical month in year 2
| Sales | ₹3,51,000 |
| Raw material & packing | −₹2,57,400 |
| Electricity | −₹5,535 |
| Salaries | −₹23,100 |
| Rent | −₹15,750 |
| Other running costs | −₹10,500 |
| Operating profit | ₹38,715 |
| Loan instalment (EMI) | −₹15,711 |
| You keep each month | ₹23,004 |
After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.
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Turn these numbers into a full project report: cost of project, means of finance, 5-year profit and loss, balance sheet, repayment schedule, DSCR and break-even.
Make my project reportInvestment breakdown
| Machinery & equipment | Price |
|---|---|
| Wooden ghani (cold press) oil machine × 2About 15 kg seed per batch of 45–60 minutes, 3 HP | ₹3,20,000₹1.12 lakh–₹1.95 lakh |
| Oil filter press | ₹45,000 |
| Stainless-steel settling and storage tanks × 3 | ₹36,000 |
| Filling machine and cap sealer | ₹25,000 |
| Weighing scales (platform + table) | ₹9,000₹6,000–₹15,000 |
| Counter, display racks and signboard | ₹40,000 |
| Seed cleaner / de-stoneradd-on | ₹50,000 |
| Machinery & equipment (without add-ons) | ₹4,75,000 |
| FSSAI, Udyam and other registrations | ₹6,000 |
| Label design, bottles and first lab test | ₹20,000 |
| Three-phase connection and wiring | ₹25,000 |
| Trial pressing and free samples | ₹10,000 |
| Working capital 20 days of raw material, 3 days of credit to buyers, 1 month of expenses | ₹2,12,672 |
| Total project cost | ₹7,48,672 |
Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.
Cost and margin per unit
| Wood-pressed groundnut oil, bottled (per litre) | ₹ |
|---|---|
| Groundnut kernels (2.4 kg at ₹105/kg), less oil cake sold (about 1.3 kg at ₹35/kg) | 206.00 |
| Bottle or tin, cap and label | 14.00 |
| Material cost | 220.00 |
| Selling price | 300.00 |
| Margin before running costs | 80.00 (27%) |
Mostly retail from your own counter; branded wood-pressed oil sells for ₹380–500 a litre in packs, loose listings ₹150–250. Sesame, mustard and coconut have different yields and prices; enter your own in the calculator.
Space, power and staff
500 sq ft
Rented shop · rent ≈ ₹15,000/month
Small-town rent for a shop on a residential main road, where walk-in customers can see the ghani. A shed costs less but then you must deliver.
6 kW, three-phase
Bill ≈ ₹9,000/month at full capacity
2 staff + you
- 1 × Ghani operator: ₹12,000
- 1 × Helper for filling and counter: ₹10,000
Licences and registrations
FSSAI registration / licence
mandatoryWhen: Before you sell · Cost: ₹100/yr for basic registration; state licence ₹2,000–5,000/yr above the turnover limit
The turnover limit for basic registration was reported to be raised in 2026. Check the current limit on foscos.fssai.gov.in. Edible oil must be sold packed and labelled; loose sale is restricted.
Udyam registration
recommendedWhen: Before applying for a loan · Cost: Free
Apply only on udyamregistration.gov.in.
GST registration
if applicableWhen: When turnover crosses the registration limit · Cost: Free
Edible vegetable oils are generally taxed at 5%. Confirm the rate and the registration limit with a CA.
Legal Metrology packer registration
if applicableWhen: Before selling bottled oil with MRP · Cost: Varies by state
Shop and Establishment registration
if applicableWhen: When you open the shop · Cost: Small fee; varies by state
AGMARK grading
recommendedWhen: When supplying shops or building a brand · Cost: Varies
How it works
- Buy clean, dry oilseed; remove stones and damaged seed.
- Load a batch into the ghani and press slowly, adding a little water or jaggery as tradition requires for the seed.
- Collect the oil and remove the cake.
- Let the oil settle for two to three days, then filter.
- Fill bottles and tins, seal and label with batch and date.
- Sell the cake to dairy farmers or feed traders.
Loan route
Mudra loan (Tarun)
Own money ₹74,867 · Loan ₹6.74 lakh · EMI ≈ ₹15,711
No collateral, no subsidy.
How Mudra worksPMEGP (new units)
Subsidy ₹1.12 lakh (general, urban) to ₹2.62 lakh (special category, rural). EMI ≈ ₹13,092–₹10,474.
Own money 5–10%. Subsidy is held as a 3-year deposit, then adjusted against the loan.
How PMEGP worksAssumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).
Who buys and how to sell
Buyers
- Households in your area (repeat monthly buyers)
- Health-conscious customers and fitness groups
- Organic and grocery stores
- Home cooks, sweet makers and small restaurants
- Dairy farmers (for the oil cake)
Ways to sell
- Own counter with the ghani visible
- Monthly home delivery to regular customers
- WhatsApp orders
- Supply to organic stores on margin
Season: Sales are steady, with more demand in winter and before festivals. Seed is cheapest after harvest, so buying is seasonal.
Competition: Refined oils are far cheaper, and wood-pressed oil shops have opened in many towns. Trust, visible pressing and consistent quality decide who keeps customers.
Risks and how to handle them
Oilseed prices rise and customers resist a higher price
Buy part of your seed after harvest and store it dry; change prices openly with the seed rate.
Sales build slowly and machines sit idle
Start with one or two oils, offer monthly subscriptions and small trial bottles, and add the second ghani only when needed.
Oil turns rancid or fails an FSSAI sample
Press in small lots, use clean dry seed, store away from light and heat, and test each oil at a lab periodically.
Customers suspect mixing with cheap oil
Press in front of customers, never blend, and display seed purchase bills and test reports.
Tips from the trade
- Yield and price differ for every seed; work out each oil separately before fixing prices.
- Selling the cake promptly matters: it is a real part of the income and spoils if stored damp.
- Customers who bring their own seed for job-work pressing add income with no stock risk.
Questions people ask
Why does wood-pressed oil cost so much more than refined oil?+
A ghani extracts less oil from each kilo of seed than a solvent plant, works in small slow batches and uses good-quality seed. The oil is not refined, bleached or deodorised.
Which oil should I start with?+
Start with the oil most used in your region: groundnut in Maharashtra and Gujarat, sesame and coconut in the south, mustard in the north and east.
How much investment is needed to start a wood-pressed oil mill (lakdi ghani) business?+
About ₹7.49 lakh for a small unit: ₹4.75 lakh for machinery and equipment, ₹61,000 for set-up costs and ₹2.13 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.
How much profit can a wood-pressed oil mill (lakdi ghani) business make per month?+
At 45% of capacity, sales are about ₹3.51 lakh a month and operating profit about ₹38,715 before the loan instalment. After an EMI of about ₹15,711, the owner keeps about ₹23,004 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.
Which machines are needed for wood-pressed oil mill (lakdi ghani)?+
Wooden ghani (cold press) oil machine (₹1.12 lakh–₹1.95 lakh); Oil filter press (about ₹45,000).
Can I get a Mudra loan or PMEGP subsidy for wood-pressed oil mill (lakdi ghani)?+
With a project cost of about ₹7.49 lakh, the bank loan of about ₹6.74 lakh falls under Mudra Tarun. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹2.62 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
What licences are required for wood-pressed oil mill (lakdi ghani)?+
Mandatory: FSSAI registration / licence. Depending on your set-up you may also need: Udyam registration, GST registration, Legal Metrology packer registration, Shop and Establishment registration, AGMARK grading.
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Sources
- Aajjo: 15 kg kolu power ghana machine listing
- Aajjo: rotary wooden ghani cold-pressed machine listing
- TradeIndia: oil ghani machine manufacturers
- Gramiyaa: understanding groundnut oil pricing
- IndiaMART: groundnut oil prices
- FSSAI FoSCoS (registration and licensing)
Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.
Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.