Consignment sales query

hi all

I have one small query regarding the consignment sales. my client having an edible oil refinery. my client wish to purchase crude oil on consignment basis from maharastra and get the material to Andhra Pradesh and process the crude oil and they wish to sale the finished goods  on consignment basis to tamilnadu.

let me know the consignment sale transaction clarification . whether  shall  an agent can purchase crude oil from principal , and process the same and sold the goods(finished products)  to another agent , whether the sale is valid or not !  pls clarify the same