Cedarwood Oil Project Report, Business Plan

Introduction to Cedarwood Oil Project Report, Manufacturing Process Business Plan: Cedarwood essential oil is extracted using the bark, leaves, and berries of cedar trees. There are several varieties of cedar trees seen across the globe. Some trees known as cedars are mainly juniper trees. Mainly they are the evergreen conifers.

Steam distillation, cold pressing, and carbon dioxide distillation are some methods for extracting the essential oil. Though it has its individual uses, it has wide applications as a component in products like cologne, insect repellent, shampoo, and deodorant.

A guide to Cedarwood Oil Project Report, Manufacturing Process Business Plan in India

Essential Oil
Essential Oil (Image credit: pixabay)

Uses of Cedarwood Oil: The oil has essential characteristics which contribute to its wide applications.

  • Antiseptic
  • Antifungal
  • insecticidal
  • antispasmodic
  • anti-inflammatory
  • Diuretic

Cedar oil is a wonderful product for wellness and beauty purposes. It is even an essential oil that originates from a plant. It was used for years in various applications. Here, you will find some of the effectiveness and advantages of Cedar oil.

Reduces hair fall

Cedar oil effectively activates hair follicles and assists in growing hair. When you are worried about limp hair, you may use this oil that will aid to get thick and strong hair.


Some drop cedar oil while you take a bath and allow your body to relax for 30 minutes. Your eczema issue will be decreased and you will get smooth skin. It will even tighten your muscle which makes you look younger.


If you have arthritis or problems in your stiff joints then cedar oil is a great pain reliever. Just massage the oil topically and stay for some time you will make out difference and find some relief and reduced pain.

Relaxes body and mind

Because of the sedative property, when one inhales cedar oil, it will reduce stress and permit you to get a restful sleep.

Insect repellent

You can pour some drops of cedar oil into distilled water and lavender oil mixture. Fill this liquid in a spray bottle and spray it in various parts of your house. Insects such as mosquitoes and flies will rarely be seen in the house. Even it is useful to keep bugs away from your clothes.

Business plan to start Cedarwood Oil Manufacturing Process

You need to consider the below points before starting the Cedarwood Oil Manufacturing Unit in India.

  • Market potential
  • List of licenses, registration and permissions
  • Implementation schedule of project
  • Raw materials required
  • Machinery required
  • Production process
  • Estimated cost and
  • Profit analysis

Implementation schedule of Cedarwood 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 Cedarwood Manufacturing Business

Cedarwood Oil, also called cedar oil, is an important oil derived from numerous types of conifers, particularly in the pine or cypress botanical families. It is extracted even from the foliage, and sometimes even the leftover roots, wood, and stumps remaining after cutting of trees for timber extraction. It has several applications in different sectors like art, medicine industry in perfume. The properties of oils derived from different species may change and some have bactericidal and pesticide effects as well.

List of license approvals required to start Cedarwood Oil Manufacturing Business

Below is the list of licenses, registration, and permissions required to start Cedarwood Oil Manufacturing Business:

  • MSME registration
  • GST registration
  • ROC
  • Registration of firm
  • Shop Act License
  • FSSAI License
  • IEC Code
  • Export License
  • Fire and Safety
  • ESI
  • PF
  • No Objection Certificate from pollution board
  • Trade license from local municipal authority

Area required to start Cedarwood Oil Manufacturing Business

To start a small-scale Cedarwood Oil Manufacturing Business, you require 300 – 500 sq. mt of area.

List of machinery required for starting Cedarwood Oil Manufacturing Business

Below is the list of machinery required to start Cedarwood Oil Manufacturing Business –

  • Condenser
  • Evaporate vessel
  • Pump (condensate)
  • Florentine flask
  • Pump (cooling water)
  • Steam boiler
  • Cooling tower

The manufacturing process of Cedarwood Oil

In case if you miss this: Neem Oil Manufacturing Project Report.

The manufacturing process of Cedarwood Oil
The manufacturing process of Cedarwood Oil (Pic source: pixabay)

Cedarwood Oil extraction can be done by following any one of the below processes.

Extraction process

If you desire to extract the oil on a large scale, you can make use of steam distillation or wood distillation and apply pressure. The wood distillation process is somewhat expensive because of the machinery used in it and the process requires carbon dioxide.

Extracting the oil from cedar is a bit tedious method. In this article, you will get to know about a few of the extraction methods.

Steam distillation process

You have to get a stainless-steel pot for the process. This pot is then filled using some cedar bark, leaves, and berries. Place an empty can in the middle and add abundant cedar around till the can is full. Then pour distilled water around the can and even on the cedar leaves. Start heating and allow it to boil. Cover using a lid facing upside down. Now, include ice cubes on the lid. Frequently, check the quantity of liquid in the can. To have extra water, go on adding ice to it.

When you obtain the required quantity of liquid, strain it which will separate leaves, bark, and berries. Allow the liquid to cool down and you will have an oily fluid at the upper section. Finally, you will get the cedar oil.

Using oil or alcohol base

Get a clean glass jar and add cedar leaves, berries, and bark to the jar. Place some almonds on top. Then close the lid of the glass jar and keep it in a dark and cool place for about 5-7 days. Strain the liquid and separate the leaves and other materials.

Project Report/Economics of Cedarwood Oil Manufacturing Business in India

How About This: 1000 MT Cold Storage Project Report.

Economics of Cedarwood Oil
Economics of Cedarwood Oil (pic source: pixabay)

A. Fixed Capital

(i) Land and Building

Land 300sq. mt. @ 600 sq mt. Rs. 1,80,000

Covered area 200 sq. mt. @ Rs. 3,500 and boundary wall Rs. 7,00,000

Total 8,80,000.

(ii) Plant and machinery

1. Chilling plant cap. 492 liter, temp. (50ºC ) chart type: Rs. 1,89,000

2. Centrifuge heavy-duty R.P.M. 1200: Rs. 80,000

3. S.S. reaction vessel with stirrer cap. 200kg: Rs. 1,80,000

4. Dryer capacity 100 kg 12 trays. with Thermostat temperature control: Rs. 1,80,000

5. Vacuum filter: Rs. 40,000

6. S.S Tray for storage: Rs. 60,000

7. Laboratory equipment: Rs. 50,000

8. Transportation and installation charge @ 10% of the cost of plant and machinery: Rs. 77,900.

B. Working Capital

(i) Staff and Labour (per month)

1 Chemist/Manager: Rs. 10,000

2 Technical Assistant: Rs. 20,000

3 Skilled Worker: Rs. 24,000

4 Typist /Clerk: Rs. 4,000

5 Watchman: Rs. 12,000

Total: Rs. 70,000

Perquisites @ 15%: Rs. 10,500

Total: Rs. 80,500.

(ii) Raw Materials and Packing Materials (per month)

1. Mint oil: 11,250 kg, where it costs Rs. 300 per kg: Rs. 33,75,000

2. Chemicals: Rs. 10,000

3. Packing materials: Rs. 20,000

Total: Rs. 34,05,000.

(iii) Utilities (per month)

Power 1250 unit @ Rs.4: Rs. 5,000

Fuel: Rs. 5,000

Total: Rs. 10,000.

(iv) Other Contingent Expenses

1. Postage/Stationery: Rs. 1,000

2. Telephone: Rs. 500

3. Repair/maintenance: Rs. 5,000

4. Transportation: Rs. 10,000

5. Advertisement/publicity: Rs. 5,000

6. Miscellaneous expenses: Rs. 2,000

Total: Rs. 23,500.

(v) Total Working Capital (per month)

= Rs. 80,500 + 34,05,000 + 10,000 + 23,500

= Rs. 35,19,000.

Total Capital Investment

Fixed capital: Rs. 17.36,900

Working capital (3months): Rs. 1,05,57,000

Total: Rs. 1,22,93,900

Cost of Production (per annum)

Total recurring expenditure: Rs. 4,22,28,000

Depreciation on building @ 5%: Rs. 35,000

Depreciation on plant and m/c @ 10%: Rs. 85,690

Interest on total capital investment @ 14%: Rs. 17,21,146

Total: Rs. 4,40,69,836

Or Say: Rs. 4,40,69,850.

(2) Turn Over (per annum)

By sale of:

(I) Flakes 85050 kg @ 500 kg: Rs. 4,25,25,000

(II) De-mentholised 36450 kg @ Rs. 160/kg: Rs. 5,83,2000

Total: Rs. 4,83,57,000.

Profitability (per annum) in Cedarwood Oil Manufacturing Business

 Profit = Rs. 4,83,57,000 – Rs. 4,40,69,850 = Rs. 42,87,150.

Rate of Return

= Profit × 100 / Total capital investment

= 42,87,150 × 100 / 1,22,93,900

= 35.0%

(5) Net Profit Ratio

= Profit × 100 / Sale

= 42,87,150 × 100 / 4,83,57,000

= 8.86%.

Break Even Point

= Fixed cost × 100 / Fixed cost + profit

= 2241036 × 100 / 23,41,036 + 42,87,150

= 2241036 × 100 / 6528186

= 34.3%.


Please enter your comment!
Please enter your name here