Project Profile: Peanut Butter


Peanuts have considerable nutrients and are consumed in different forms all over the world since long. Peanut butter is one such product consumed in large quantities especially in western countries since many years. It is very popular in India and the domestic market is dominated by peanut butter. Promoters must target growing export market and should be financially sound.


Peanut butter are used for

Production of nutritional supplements

Peanut butter as Direct Consumption

Confectionery products – peanut candy bars, peanut butter cookies, cakes, chocolates

Snacking products – salted peanuts, dry-roasted peanuts, boiled peanuts.


Peanut Butter in bottle/ Jar in 100, 200 and 500 Gms.


The primary objective of the model report is to facilitate the entrepreneurs in understanding the importance of setting up unit of Fruit & Vegetable Powder. This model report will serve as guidance to the entrepreneurs on starting up such a new project and basic technical knowledge for setting up such a facility.

Critical Success Factors

Indian peanuts are popular all over the world with large exports every year. But unfortunately, our market share is primarily confined to raw peanuts and value-added products like blanched & roasted peanuts or peanut butter have very negligible contribution. Consumption of peanut butter is yet to pick up in the country and the project must concentrate on foreign buyers. Peanut butter is very popular in the USA, the UK, Holland, Australia, New Zealand, South Africa, South East Asian and Gulf countries. These are all very large and growing markets and can be tapped as majority of them import substantial quantity.

Looking to growing health consciousness for low calorie and high protein food, the consumption and uses of peanut butter is bound to increase in the coming decade

Raw Material

Basic Raw material for proposed unit is “Peanut”.


The capacity of the project is 4 TPD, assuming the working capacity of the machinery is 8 Hrs per day for 300 working days.

Manufacturing Process

Groundnut Pre-Cleaning & Shelling

Good quality groundnut pods are sorted out before shelling them in openers.

Peanut Grading:

Shelled peanuts are graded according to sizes to ensure only big or bold peanuts are taken up for process.

Peanut Roasting:

Roasting is done at around 160 degree Celsius for 40-60 minutes depending upon the moisture in peanuts. This reduces water content to ~1% which increases the shelf life and helps develop flavor.

Peanut Blenching:

After roasting, peanuts are cooled and then blanched (removal of outer red skin). After blanching each peanut is inspected to remove discoloured (grey or black) nuts.


Peanuts are then ground in peanut butter mill in two stages, the first reduces the nuts to a medium grind and the second to a fine, smooth texture. Other ingredients such as salt, sugar and stabilisers are added during this process.


Air is incorporated into peanut butter during milling and subsequently it is removed in a vacuum.


From the grinder, the peanut butter goes to a stainless steel hopper, which serves as an intermediate mixing and storage point. The stabilized peanut butter is cooled in this rotating refrigerated cylinder.

Filling & Packaging:

The stabilized peanut butter is automatically packed in jars, capped and labelled. Since proper packaging is the main factor in reducing oxidation, manufacturers use vacuum packing.

Land Area Requirement

Land should be located near to the growing Agri-cluster area easily connected with the Road and Rail. The Project Land should also have easy availability of the water and electricity. The ideal land require for the project is 1.00 Acre

Implementation Schedule

It will take Eighteen (18) months to complete all the formalities before starting the commercial production.

Financial Aspects

  1. Civil Infrastructure : 2.00 Cr.

  2. Plant & Machinery : 4.00 Cr.

  3. Other Expenses : 1.00 Cr.

Total Project Cost : 7.00 Cr.

Means of Finance

  1. Equity Contribution (30%) : 2.10 Cr.

  2. Bank Finance (70%) : 4.90 Cr.

Total Project Cost : 7.00 Cr.

· Estimated Turnover of the project will be around Rs. 10 Crore with Positive IRR of 18%.

Government Incentives

1. Government of India has designed a Pradhan Mantri KisanSampada Yojana, In Which Capital Grant from Rs. 5 to 10 Crore is being provided as per the scheme guidelines.

2. Considering Agro and Food Processing as a priority sector various state government are also providing Incentives like Capital Investment Subsidy, Interest Subsidy, Labour Subsidy, Tax Benefits etc.

Our firm Provides following Services

» Project Management Services

o Pre-feasibility Study of the Project and existing market analysis of the product to be manufactured.

o Conceptualization of the Project and Finalization of Project Components.

o Bankable/Detailed Project Report

o Assistance in Grant/ Subsidy

o Detailed Design and Engineering of the Project

o Technology Sourcing

o Project Management Consultancy

o Supply Chain Management

o Agriculture Advisory Services etc.

» Food Product Development Services

o Suitable & Innovative Packaging as per product characteristics

o Bio-Degradable Packaging

o Development of range of variant of product with suitable packaging as per the requirement of product.

» Food Safety & Quality Licenses



o Spice Board of India


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For Reference Purpose