Corn DDGS Oil Extraction Unit

🏭 Corn DDGS Oil Extraction Unit: A Profitable Agro-Industrial Opportunity in Bihar

The demand for plant-based oils and protein-rich feed ingredients is rapidly growing across India. In this evolving market, a Corn DDGS Oil Extraction Unit presents an outstanding investment opportunity—especially in agricultural states like Bihar, where ethanol production and corn-based byproducts are becoming increasingly common.

In this article, we’ll explore the profitability, setup requirements, and market potential of establishing a 25 TPD (Tons Per Day) Corn DDGS Oil Extraction Unit in Bihar, based on updated data as of June 2025.

Corn DDGS Oil Extraction Unit

🌽 What is a Corn DDGS Oil Extraction Unit?

DDGS stands for Distillers Dried Grains with Solubles—a byproduct of ethanol production using corn. It contains residual oil, protein, and fiber. A Corn DDGS Oil Extraction Unit uses solvent extraction technology (typically with hexane) to extract the valuable oil content and produce de-oiled DDGS, which is widely used in cattle and poultry feed.

The two main revenue-generating products are:

• ✅ Refined Corn Oil (for edible and industrial use)

• ✅ De-oiled DDGS (high-protein feed)

📍 Why Bihar?

Bihar is emerging as a hub for ethanol production, making it an ideal location for setting up a Corn DDGS Oil Extraction Unit. Several advantages include:

• Easy availability of raw Corn DDGS from ethanol plants

• Lower land and labor costs

• Strong market demand for both corn oil and de-oiled DDGS

• Government support for agro-processing and MSMEs

🏗️ Project Summary: 25 TPD Corn DDGS Oil Extraction Unit

📌 Parameter	✅ Details
Capacity	25 Tons Per Day (TPD)
Operating Days	330 days/year
Raw Material	Corn DDGS (8% oil content)
Process	Hexane solvent extraction + oil refining
Output Products	Corn Oil (~1.8 MT/day), De-oiled DDGS (~23.2 MT/day)
Location	Agro-industrial region in Bihar

💹 Financial Snapshot (June 2025 Market Rates)

Category	Amount
Daily Revenue	₹5.98 Lakhs
Daily Variable Cost	₹4.72 Lakhs
Daily Gross Profit	₹1.26 Lakhs
Annual Net Profit	₹3.34 Crores (330 days)
Estimated Project Cost	₹4 Crores
Payback Period	1.2 years approx.

This shows a strong ROI and a very short payback period—ideal for entrepreneurs and industrial investors looking to tap into agribusiness.

🧰 Project Components & Cost Structure

Component	Cost (₹ Lakhs)
Machinery & Equipment	250
Building & Civil Works	75
Utilities & ETP	25
Pre-Operative Expenses	15
Working Capital Margin	35
Total Project Cost	₹400 Lakhs (₹4 Cr)

👨‍🔧 Manpower Requirement

A 25 TPD Corn DDGS Oil Extraction Unit typically requires:

• 4 Skilled Technicians

• 6 Plant Operators

• 4 Helpers and Laborers

• 2 Administrative/Quality Staff

Total manpower: ~16 persons

📈 Market Outlook

🌽 Corn Oil:

Corn oil is used in cooking, cosmetics, and poultry nutrition. The current average market rate for refined corn oil is ₹165/kg, making it a high-value product with stable demand.

🐄 De-oiled DDGS:

With high protein (~30%), de-oiled DDGS is increasingly preferred in cattle, poultry, and aquafeed. The average selling price is ₹13/kg, offering consistent revenue.

🛡️ Regulatory Requirements

To set up and operate a Corn DDGS Oil Extraction Unit in Bihar, the following approvals are required:

• Factory License

• Pollution Control Board (BSPCB) Clearance

• PESO License for hexane

• FSSAI License (if selling edible oil)

• GST Registration

💡 SWOT Analysis

✅ Strengths	❌ Weaknesses
High-profit margin	Requires skilled operation
Strong local supply chain	Raw material availability must be consistent
Co-product value	Regulatory compliance required

📈 Opportunities	⚠️ Threats
High demand in feed industry	Price fluctuations (oil/DDGS)
Scope for export of oil & feed	Environmental regulations on hexane

🏦 Funding Options

You can fund the project through a combination of equity and debt:

Source	Amount
Promoter’s Equity (30%)	₹120 Lakhs
Bank Term Loan (70%)	₹280 Lakhs
Total	₹400 Lakhs

Eligible for support under MSME and Agro-based schemes from NABARD, SIDBI, and Bihar Government.

✅ Final Verdict

A Corn DDGS Oil Extraction Unit at 25 TPD capacity in Bihar is highly profitable, scalable, and future-ready. With raw material availability, rising demand for both corn oil and de-oiled DDGS, and strong returns, this project is ideal for investors and entrepreneurs looking to enter India's growing agro-industrial sector.

📞 Need Help Starting Your Own Unit?

If you're planning to set up a Corn DDGS Oil Extraction Unit in Bihar and need help with:

• Project report or DPR

• Machinery selection

• Market linkage for oil or de-oiled DDGS

• Government subsidy or bank loan application

Contact us today — we're here to help you succeed in agro-industrial ventures!