Cost of Starting a Cashew Processing Unit: A Complete Investment Guide (2025)

Introduction

Cashew processing is one of the fastest-growing agribusiness opportunities today. With rising global demand for premium cashew kernels, many entrepreneurs are exploring this profitable industry. However, the most common question is — “What is the cost of starting a cashew processing unit?”

This guide breaks down every essential detail, from setup costs and machinery prices to operational expenses, so you can plan your investment confidently and build a successful cashew processing business.

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1. Key Factors That Affect the Cost of a Cashew Processing Unit

The total setup cost of a cashew unit depends on several variables, including:

• Production Capacity – The higher the daily processing capacity (in kg or tons), the greater the investment.

• Type of Machinery – Manual, semi-automatic, and fully automatic machines vary widely in cost and productivity.

• Infrastructure and Land – Whether you rent or purchase land affects your total startup cost.

• Labor and Training – Skilled labor improves efficiency but increases initial expenses.

• Utilities and Power Supply – Steam, water, and electricity requirements depend on the size of the plant.

Understanding these factors helps you estimate your startup budget more accurately.

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3. Essential Machinery for Cashew Processing

To start a cashew unit, you need the right combination of machines for each stage of processing.

Here’s a list of commonly used equipment:

• Raw Cashew Calibrator/Grader

• Boiler or Steam Generator

• Autoclave Cooker

• Oven Dryer (Borma Hot Chamber)

• Cashew Shelling Machine (Manual, Semi-Automatic, or Fully Automatic)

• Peeling Machine

• Kernel Grading Machine

• Packing and Vacuum Sealing Unit

At Muskaan Group, we manufacture and supply complete turnkey cashew processing machinery, customized for small, medium, and large-scale industries.

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4. Example: Cost of a 1-Ton/Day Cashew Processing Unit

Let’s take a practical example to understand investment and returns.

For a 1-ton per day capacity unit, you will need approximately:

• Machinery and equipment: ₹60 lakhs

• Land and construction: ₹35 lakhs

• Raw material (R.C.N): ₹25 lakhs

• Working capital: ₹15 lakhs
  Total Estimated Cost: ₹1.35 crore (approx.)

This setup can produce around 700–750 kg of finished cashew kernels daily, depending on yield and efficiency.

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5. Operating Costs and Profitability

After setup, you will have monthly operational expenses such as:

• Electricity, fuel, and water charges

• Labor and maintenance costs

• Raw cashew purchases

• Packaging and transportation

Despite these recurring costs, cashew processing offers high profit margins, and most businesses achieve a return on investment (ROI) within 2–3 years.

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6. Tips to Reduce Setup and Operating Costs

Here are a few practical tips to lower your overall investment:

• Start with semi-automatic machinery and upgrade gradually.

• Purchase equipment directly from manufacturers like Muskaan Group to save on dealer commissions.

• Use locally available building materials to reduce construction costs.

• Train your workers internally to improve productivity.

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7. Why Choose Muskaan Group for Cashew Processing Machines?

Muskaan Group is a trusted name in cashew processing machinery with decades of experience in designing efficient, durable, and cost-effective systems.
We provide:

• Turnkey plant setup (design, installation, and training)

• Custom-built machinery based on production capacity

• After-sales service and maintenance support

• High automation options for maximum kernel recovery and quality

Our goal is to help entrepreneurs and industries build profitable cashew processing units with minimal effort and maximum efficiency.

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Conclusion

Starting a cashew processing unit requires thoughtful planning and proper budgeting, but the potential returns make it a worthwhile investment. Whether you’re planning a small-scale setup or a large industrial plant, understanding your setup cost and operational requirements is the first step toward success.

If you’re ready to start your cashew journey, Muskaan Group can help you design and build a fully functional processing plant tailored to your needs.

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Get in Touch

📞 Contact Muskaan Group today for a personalized cost estimate and complete project guidance.
🌐 Visit: www.muskaangroup.com
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