Introduction to Aloe Vera Gel Project Report, Extraction Process, and Manufacturing Business Plan: Aloe vera is a succulent that stores water in the form of a gel in its leaves. Thus, the aloe vera leaves have significant medicinal value. In India, aloe vera grows almost throughout the nation. From aloe vera, you can develop several products which are highly in demand in the present market. Aloe vera juice, powder, gel, are few important items that are commonly prepared using gel. Here in this article, we will summarise the aloe vera gel manufacturing business that is operated on a small scale. To begin with this business the first aspect that strikes your mind is ‘how to prepare aloe vera gel’ but you need not panic about that as you are at the correct place to get the essential knowledge about the business.
Aloe vera gel is a very vital product that is obtained from aloe vera leaves. The item has the requirement from the direct consumer and industrial segment. Hence, the concentrated aloe vera gel has two-way clients. Besides, the herbal companies that manufacture powder, medicines, etc. could require gel for their aloe vera-based medicines or items for they acquire this gel as one of the major components.
In this business, the location is a vital aspect as it will reduce the expenses associated with transportation of the raw material to your factory from the farm. Thus, it is recommended to establish the unit near to aloe vera growing farm or areas to reduce the time and the capital incurred for transportation.
Economics/Aloe Vera Gel Project Report, Extraction Process, and Manufacturing Business Plan in india
Composition of Aloe Vera Gel: There are almost 200 different types of essential compounds in aloe vera. The aloe vera leaf gel majorly contains water. The total solid content of aloe vera gel accounts for 0.66% and soluble solids are about 0.56% with some seasonal variation.
On a dry matter basis, aloe vera gel includes polysaccharides (55%), sugars (17%), proteins (7%), minerals (16%), lipids (4%), and phenolic compounds (1%) apart from the important antioxidant vitamins A, E and C. Vitamin B1 (thiamine), niacin, Vitamin B2 (riboflavin), choline, and folic acid are even important components in the gel.
Business plan for starting Aloe Vera Gel Manufacturing Business
Firstly, you to craft a perfect business plan for starting any kind of business unit which includes
- Market demand
- Implementation schedule
- List of approvals required
- Area required
- Raw materials
- List of machinery
- Project economics
Implementation schedule of Aloe Vera Gel Oil Manufacturing Business
- Market analysis and demand, applying for loan 0 – 1 month
- Preparation of business plan 1 – 2 months
- Financial support or investment 2– 4 months
- Selection of location and establishment of unit 3 – 4 months
- Power and water connection facility: 4 – 5 months
- Building construction and shed development 5 – 6 months
- Machinery and equipment purchase 6 – 7 months
- Procuring raw materials and recruiting of manpower 8 – 9 months
- Trial operations 10th month
Market potential of Aloe Vera Gel Manufacturing Business
Aloe vera originates from the Liliaceae family and has thick green leaves which contain gel and latex. The gel contains mainly water and also includes various vitamins, amino acids, enzymes minerals, hormones, etc. mostly which are essential for the human body.
Aloe Vera gel is extensively in demand by the cosmetic industry, toiletries industry, food industry, and the pharmaceutical industry for its therapeutic properties. In the global market, the aloe vera gel has abundant demand that has been increased to 11% comparatively since past some years. Its demand in the international market accounts for 465 million and is snowballing progressively. The market is exponentially growing because the Aloe vera gel is highly required for various industries like health care, cosmetics, and food.
Aspects such as the growing attitude of consumers for a fitness-based lifestyle, and the need for aloe vera extract as an essential ingredient in the food, pharmaceutical, and cosmetics sectors have powered the market to rise across the world.
List of registration and license required for Aloe Vera Gel Manufacturing Business
For starting an aloe vera gel manufacturing unit without any legal issues, one should obtain some important permissions and licenses from the government authorities. It varies depending on the specific region where the unit will be located. Additionally, if are willing to manufacture cosmetic items then you must apply for even more particular licenses. Here, we have mentioned some significant requisites for the processing of concentrated aloe vera gel using aloe leaves.
First of all, you the business must have registration. According to the management pattern, select the right pattern of business.
Moreover, it is important to apply for a trade license and professional tax application.
- Apply for Pan Card.
- Approach nearby bank to open a current account
- Next, get the MSME Udyog Aadhaar registration done through an online platform
- Apply for factory license by approaching state authority.
- Importantly, you must avail of ‘NOC’ from the State PCB (Pollution Control Board).
- Finally, see the tax obligations and yearly compliance charges.
Plant setup and machinery required for Aloe Vera Gel Manufacturing Business
For initiating the plant, the primary requirement for setting up the unit is space. However, the area choice is based on the planned product production quantity and business scale. You can initiate a small-scale processing plant with a 1000 sq. ft area. Along with it, you have to acquire a commercial power connection, hire workers, check the facility for water supply, and transport possibility
You can start the aloe vera processing plant in two ways. It is possible in a semi-automatic way or fully automatic manner. It is preferred to start as a semi-automatic mode for small-scale businesses. Also, in a semi-automatic mode, you will have the possibility to include additional products such as aloe vera juice or powder that have a great potential for various industries.
Some of the essential equipment and machinery for this business has been listed below:
- Cooling van to acquire the aloe leaves from the cultivated site
- Aloe leaf washing unit and extractor
- Aloe vera peeling machine
- Aloe vera gel making device
- Filling machine
- Testing machinery
- Weighing Scale
- DG installation as back up for uninterrupted power supply
The manufacturing process of Aloe Vera Gel
In case if you miss this: Clove Oil Manufacturing Project Report.
After the raw material is acquired at the factory, it is important to wash and disinfect the plants. There are two common methods of processing. First, the processing of the complete leaf along with the shell that comprises aloin (stage-1- whole leaf method), and next is the separation of the leaf from the gel before processing (stage-2- separation method).
During the separation step, the bottom of the leaf is cut off and the leaves will be allowed to “bleed”. This will permit the aloin to expel out of the leaves. This portion of the plant is famous for its bitter taste and its laxative property. For a good grade gel, the aloin should be separated from the final gel.
After you collect the gel from the plants, it will be filtered first. Next, pasteurize, homogenize, and stabilize the gel. The last step must be to concentrate the gel. The complete procedure will be done in 48 hours to obtain the final Aloe extract. However, there is a high probability of losing the quality during the process in many ways. It is significant to obtain a quality gel which is not possible many times because of the poor quality of leaves and or might be due to slow processing.
Now, the concentrated aloe vera gel can be packed for selling to market or the companies need it as raw material to manufacture products.
Aloe Vera Gel Project Report/Economics of Aloe Vera Gel Manufacturing Business in India
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a. Land & Building: 600 Sq ft @ Rs. 10,000 Rented
b. Machinery and Equipment: Rs. 4,25,000
A. Staff and Labour: Rs. 1,72,000
B. Raw material per month: Rs. 1,76,675
C. Utilities per month: Rs. 8,000
D. Other Contingent Expenses per Month: Rs. 1,75,000
Total Working Capital per month = A + B + C + D = 1,72,000 + 1,76,675 + 8,000 + 1,75,000 = Rs. 5,31,675
Total Capital Investment
Fixed capital = Rs. 4,25,000
Working Capital (on 3 months basis) = Rs. 15,95,025
Total = Rs. 20,20,025
Financial analysis of Aloe Vera Gel Manufacturing business
a. Cost of Production (Per Year): Rs. 66,24,603
b. Turnover (Per Annum): Rs. 72,00,000
c. Net Profit Per Annum:
Net Profit = Turnover per Year – Cost of Production = 72,00,000 – 66,24,603 = Rs. 5,75,397
d. Net Profit Ratio = (Net Profit per year / Turnover per Year) X 100 = (575397 / 7200000) X 100 = 7%.
e. Rate of Return = (Net Profit per year / Total Investment) X 100 = (575397 / 2020025) X 100 = 28.48%.
Break-Even Point (B.E.P.)
Interest on investment @ 10%: Rs. 2,02,003
40% of wages and salaries: Rs. 68,800
40% of other expenses (except rent): Rs. 70,000
Rent: Rs. 1,20,000
Total: Rs. 4,60,803.
Break- Even Point (B.E.P.) = [Fixed Cost/ (Fixed cost + Profit)] X 100 = 460803/ (460803+575397) X 100 = 460803 / 1036200 X 100 = 44.47%.
Marketing strategies to promote your Aloe Vera Gel product
One may plan to sell the aloe vera gel in nearby markets or you can also sell that in the medical shops. One could apply some B2B websites and B2C websites online and advertise your product.
The person can also sell the items in supermarkets, small shops in shopping malls, etc. Promotion of the item through social media will lead to a huge number of customers and like this one can endorse and support the business. Even though there are numerous aloe vera gel manufacturers in India, but the requirement is there as people always tend to try new products for the vast medicinal advantages they offer. So, one must not panic about the market.
You must figure out about the aloe vera gel price, by verifying the costs of aloe vera gel price by Forever, aloe vera gel price by Himalaya, aloe vera gel price by Patanjali, etc.
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