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Project Report on Decortication and Packing of Peanut

Capacity Peanuts (50 Kgs each Bag): 400 Bags Per Day Plant and Machinery cost 30.00 Lakhs
Working Capital 0.00 Rate of Return (ROR) 30.00 %
Break Even Point (BEP) 53.00 % TCI 0.00 Lakhs
Cost of Project 534.00Lakhs


If you work in the food sector, especially if you deal with peanuts, you've probably heard the term Decortication and Packing of Peanuts. Simply said, it comprises removing the outer skin of the peanut and packing it before to shipping or selling it to customers. What does it mean, though, to decorticate peanuts? What does the term "decortication" mean? Before hulling, peanuts have their skins removed. They're roasted after that. The roasting kills the microorganisms that live naturally on peanut shells, keeping the oils from becoming rancid.

After roasting, peanuts are shelled again to remove any remaining shell fragments. This treatment also gets rid of any minute shell fragments that were missed during the decortication process (this can happen if a peanut gets slightly crushed during shelling). Finally, the decorated nuts are pulverised into a fine powder for use in products like peanut butter and protein powders.

Peanuts, also known as groundnuts, are a high-value commodity that can be sold raw but can also be used to make a number of products. The oil can be used in cooking, as a shortening, or as a confectionery base. It's also good for making peanut butter.

Arachishypogaea, or peanut or groundnut, is a legume or "bean" species. In Paraguay's lowlands, the peanut was most likely domesticated and farmed. It's an annual herbaceous plant that grows 30 to 50 cm (1.0 to 1.6 feet) tall. Each leaflet is 1 to 7 centimetres length and 1 to 3 centimetres broad. The leaves are opposite, pinnate, and four-leaflet pinnate (two opposing pairs; no terminal leaflet). Earthnuts, ground nuts, goober peas, monkey nuts, pygmy nuts, and pig nuts are just a few of the names for peanuts. The peanut is a legume, not a nut, despite its name and appearance.

India is the world's second-largest producer of groundnuts. Indian groundnuts come in three varieties: Bold or Runner, Java or Spanish, and Red Natal. Kadiri-2, Kadiri-3, BG-1, BG-2, Kuber, GAUG-1, GAUG-10, PG-1, T-28, T-64, Chandra, Chitra, Kaushal, Parkash, Amber, and others are the most commonly planted groundnut cultivars in India. The procurement, storage, shelling, grading, and shipping of raw peanuts are all part of the peanut processing process. Throughout the supply chain, the peanut shelling business is committed to food safety and quality. The peanut shelling industry's overall performance in delivering safe, nutritious products to consumers depends on the ability of regulatory agencies and industry to work to improve food safety and quality utilising the latest research.

The net profit of the farmer is determined by effective agricultural practises and the application of extension research. High oleic varieties present a particular challenge for the market; while most manufacturers regard this as a means to improve shelf life and freshness, it puts the producer and sheller in a bind.

Groundnut seeds are separated from their pods using this apparatus. Groundnut decortication can be done with a variety of equipment, each with a different level of difficulty. The functions of a typical groundnut decorticator are as follows:

• After cracking the groundnut, separate the seed from the seed-pod combination and feed it in a controlled manner.

Peanuts have traditionally been stored in bags and handled manually without being properly cleaned or dried. The advancement of technology has aided in the handling and storage of peanuts. Before being transported by conveying devices, the peanuts are now treated properly and kept in godowns or silos. Bucket elevators, belts, auger or screw conveyors, pneumatic conveyors, and other handling methods are available to transport the goods.

Other downstream machines are in charge of the final packing, which is defined by the needs of the customer. The final packaging is the one that reaches the market. It keeps and protects the natural occurrence of peanuts in a suitable packing material. The bag's storage capacity is 50 kg, as requested by the client.

Consumption has risen at a 2.53% annual rate and is expected to rise even more between 2019 and 2024. Groundnut seeds are high in protein and contain edible oil (43-55 percent) (25-28 percent). China and India are the world's largest consumers and exporters of peanuts, accounting for almost 36% of global consumption.

Due to variations in client consumption patterns, as demand for plant-based protein over meat-based protein develops, many other countries provide significant possibilities for exporters. As people become more interested in healthy eating, peanuts are expected to become a key source of unsaturated fats, fibre, protein, vitamins, and minerals.

Peanuts are the most extensively utilised crop in the food sector, and they may be found in a wide range of products. The peanut market is estimated to increase at a CAGR of 4.5 percent from 2021 to 2026. Peanut markets are advantageous for manufacturing a variety of peanut oils, dry roasted peanuts, and snacks that can be consumed directly or indirectly.

Groundnuts are commonly produced as a staple crop in tropical and sub-tropical developing nations, providing a valuable source of proteins, lipids, energy, and minerals. Groundnuts are primarily farmed and consumed in underdeveloped countries. Exports account for only about 6% of world output. The bulk of edible groundnuts are farmed for domestic consumption rather than export. Groundnut varieties most suited to specialised export market applications, such as the manufacturing of roasted, salted, or coated nuts, snacks, chocolate-based items, or peanut butter, are not commonly grown by producers.

Key Players:

·         Jalaram Agriexports Ltd.

·         Mehek Overseas Ltd.

·         Moolchand Exports Ltd.

·         Olam Agro India Pvt. Ltd.




  • One Lac / Lakh / Lakhs is equivalent to one hundred thousand (100,000)
  • One Crore is equivalent to ten million (10,000,000)
  • T.C.I is Total Capital Investment
  • We can modify the project capacity and project cost as per your requirement.
  • We can also prepare project report on any subject as per your requirement.
  • Caution: The project's cost, capacity and return are subject to change without any notice. Future projects may have different values of project cost, capacity or return.



NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries.

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Our Detailed Project report aims at providing all the critical data required by any entrepreneur vying to venture into Project. While expanding a current business or while venturing into new business, entrepreneurs are often faced with the dilemma of zeroing in on a suitable product/line.


And before diversifying/venturing into any product, wish to study the following aspects of the identified product:

• Good Present/Future Demand
• Export-Import Market Potential
• Raw Material & Manpower Availability
• Project Costs and Payback Period

We at NPCS, through our reliable expertise in the project consultancy and market research field, Provides exhaustive information about the project, which satisfies all the above mentioned requirements and has high growth potential in the markets. And through our report we aim to help you make sound and informed business decision.


The report contains all the data which will help an entrepreneur find answers to questions like:

• Why I should invest in this project?
• What will drive the growth of the product?
• What are the costs involved?
• What will be the market potential?

The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product.

The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.

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• This report helps you to identify a profitable project for investing or diversifying into by throwing light to crucial areas like industry size, demand of the product and reasons for investing in the product.

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• We use reliable sources of information and databases.  And information from such sources is processed by us and included in the report.


Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:



Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications


Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity


Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers


Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel


Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)


Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram


Ø  Infrastructure and Utilities

·         Project Location

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities


Project at a Glance

Along with financial details as under:


  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital


  •    Annexure 1:: Cost of Project and Means of Finance

  •    Annexure 2::  Profitability and Net Cash Accruals


                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios


                Earnings Per Share (EPS)


             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 


  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR