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Business ideaFood processing

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.

₹5–10 lakhPrices not yet confirmed with suppliers

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 town

45 litre/day: Wood-pressed groundnut oil, bottled

Add-ons

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.

Break-even at 31% capacityDSCR 3.41 (banks like ≥1.5)Payback ≈ 2.3 years

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Investment breakdown

Machinery & equipmentPrice
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 label14.00
Material cost220.00
Selling price300.00
Margin before running costs80.00 (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

mandatory

When: 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

recommended

When: Before applying for a loan · Cost: Free

Apply only on udyamregistration.gov.in.

GST registration

if applicable

When: 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 applicable

When: Before selling bottled oil with MRP · Cost: Varies by state

Shop and Establishment registration

if applicable

When: When you open the shop · Cost: Small fee; varies by state

AGMARK grading

recommended

When: When supplying shops or building a brand · Cost: Varies

How it works

  1. Buy clean, dry oilseed; remove stones and damaged seed.
  2. Load a batch into the ghani and press slowly, adding a little water or jaggery as tradition requires for the seed.
  3. Collect the oil and remove the cake.
  4. Let the oil settle for two to three days, then filter.
  5. Fill bottles and tins, seal and label with batch and date.
  6. 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 works

PMEGP (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 works

Assumes 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.

Similar businesses

Sources

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.