Eucalyptus Oil Project Report, Business Plan

Introduction to Eucalyptus Oil Project Report, Business Plan in India: Eucalyptus oil is obtained from the eucalyptus tree which is having its origins in Australia. This oil is extracted using oval-shaped Eucalyptus camadulensis leaves and their branches. The eucalyptus tree leaves are popular for their curing properties everywhere across the globe. These leaves possess antibacterial and have resisting parasitic properties. When formed as oil, eucalyptus can be used as an inhalant or a chest rub. Few drops of eucalyptus oil during bath will lessen a throbbing painfulness. Eucalyptus oil is a light-yellow fluid, with the odor of camphor and borneol. In this article, we will give comprehensive information about the eucalyptus oil manufacturing business and how you will earn income from it.

A Guide to Eucalyptus Oil Project Report, Eucalyptus Oil Manufacturing Business Plan

Eucalyptus Oil Manufacturing Business Plan
Eucalyptus Oil Manufacturing Business Plan

Uses and applications of Eucalyptus Oil: Eucalyptus oil is available as fundamental oil for home medication to cure an assortment of basic sicknesses and conditions such as asthma, nasal blockage, and as a tick repellant. Weakened eucalyptus oil may be topically used on the skin as a solution for medical purposes like joint inflammation and skin ulcers. Moreover, it is used to get comfort from the side effects of cold and impart respiratory benefits. Eucalyptol, which is generally utilized in mouthwashes and cold cures, has been derived from Eucalyptus globules. Eucalyptus is mainly utilized as basic oil with fragrance for treating medical illness

  • Relieves headache
  • For getting relief from cough
  • To avoid the bugs with the fragrance
  • To heal wounds
  • To have to trouble less inhalation
  • To regulate glucose

Business plan for starting Eucalyptus Oil Manufacturing Business

Before establishing the business perform proper analysis regarding the necessary expenses and prepare a proper estimate about the costings. The analysis must comprise daily exercises. After this, one must select the name of the firm or the brand which will be relevant to the business. Check if the location is near supermarkets, cooks, emergency clinics, parlors. Expand the business by augmenting the advantage in making several strategies and offers. The costs to initiate a business can be examined by assessing the investments using the variable expenses related to purchasing machinery, acquiring water, power connection, registration, staff salary, etc. 

The licenses must be taken for any type of business entity. The approval to operate is given by nearby state government official experts. After this is approved, one can start constructing their items. One aspect must be kept in mind that if the oils are produced specially for medications and beauty care products then they should abide by the medications and Cosmetics Act and guidelines. Below is the list of license, permissions and registrations required for starting Eucalyptus 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 (NOC) from pollution board
  • Trade license from the local municipal authority

Raw materials required for starting Eucalyptus Oil Manufacturing Business

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Eucalyptus Leaves
Eucalyptus Leaves (Image source: pixabay)

New leaves of Eucalyptus camaldulensis are collected from the nursery; the leaves were gathered and pluck with some sort of scissors. The still includes a fundamental cylinder integrated with a condenser and a graduated cylinder having a glass. The new and clean eucalyptus leaves are fed into the three-necked round extraction carafe and soaked with water. The mechanical assembly is connected to the carafe. The carafe was warmed with a warming shelf. Water and leaves were mixed and permitted to bubble. Water and released eucalyptus oil dissipate. The fume mixes dense utilizing reflux condenser, from condenser distillate water and oil stream to a graduated cylinder; as the oil does not mix with water it might be easily separated and gets collected and distillate water will be returning to the carafe after the oil has been separated from it, so that can be re-bubbled. The oil is allowed to stand for the appropriate time and later is collected and placed in a dull glass. The refining is done in Clevenger gear where the bubbling, packing, and partition are performed. 

Area required to start Eucalyptus Oil Manufacturing Business

For starting a small-scale business of Eucalyptus Oil, you need around 800 -1000 sq. ft. area to set the plant.

Machinery and equipment required for starting Eucalyptus Oil Manufacturing Business

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

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

Manufacturing process of Eucalyptus Oil

Essential oils are obtained from leaves, stems, flowers, etc. using three methods called steam distillation, hydro distillation, and solvent extraction. It is reported that the yield of essential oil is high when the steam distillation method is used compared to solvent extraction and hydro-distillation process. Right now, the most mainstream process for extraction is steam extraction, however as innovative technology is being invented the process is getting proficient and conservative strategies are being developed. These techniques are supercritical liquid extraction, dissolvable extraction, and microwave extraction. The efficiency and choice of the extraction strategy differ from plant to plant and there is a huge difference in the capital and operational costs associated with them.

The solvent extraction method for extracting Eucalyptus Oil

In the Solvent-Extraction method for eucalyptus oil manufacturing, a separating unit is added to a punctured plate of plant material and over and over washed using the dissolvable. A hydrocarbon dissolvable is used here for extraction. All the extractable material derived from the plant is disintegrated using this dissolvable. This includes exceptionally unstable smell particles like non-fragrance waxes and colors. The left-over material is known as the solid. The concentrated cement is now prepared to remove the waxy materials which affect the eucalyptus oil extraction. 

Steam distillation process of Eucalyptus Oil 

Step 1: Steam distillation is the preferred method for large-scale Eucalyptus oil production. Chiefly, you must set up steam in a boiler. Then add the steam into the container that comprises the leaves and water.

Step 2: Then keep the leaves on a grid that has been situated a bit high above the water surface which is placed in the vessel. The water gets vaporized through steam flowing in a pipe coil linked to the water.

Step 3: The water vapor and the distilled oil that got evaporated by the steam will be recovered in separate water-cooled condensers. Then the mixture of oil and water is collected by a Florentine flask.

Step 4: The eucalyptus oil will float thereby separating it simply. However, the distilled water should be transferred to the evaporator again to eliminate some soluble parts of the oil present there. Plant machinery and equipment required for extracting eucalyptus oil which is set around 1000 sq. ft are mentioned here – condenser, evaporate vessel, florentine jar, pump (cooling water), cooling tower, steam kettle, pump (condensate).

Eucalyptus Oil Project Report/ Economics of Eucalyptus Oil Manufacturing Business in India

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Economics of Eucalyptus Oil Manufacturing Business
Economics of Eucalyptus Oil Manufacturing Business

Fixed Capital:

  • Land and site development: Rs. 1,00,000
  • Building and civil works: Rs. 5,00,000
  • Plant and machinery:  Rs. 15,27,000
  • Misc. Fixed Assets: Rs. 1,98,000
  • Preliminary and pre-operative expenses: Rs. 2,23,000
  • Contingencies and escalation @ 5%: Rs. 1,16,000
  • Working capital: Rs. 1,15,000
  • Total: Rs. 27,79,000

Working Capital:

  • Raw materials: Rs. 88,000
  • Power and utility: Rs. 10,000
  • Salaries: Rs. 74,000
  • Finished goods: Rs. 1,34,000
  • Receivables: Rs. 1,49,000
  • Total: Rs. 4,58,000

Total cost required for starting Eucalyptus Oil Manufacturing Business 

Fixed Capital + Working capital = Rs. 27,79,000 + Rs. 4,58,000 = Rs. 32,37,000.

Income per annum in Eucalyptus Oil Making Business 

Total income / annum: Rs. 36,25,000.

Profit in Eucalyptus Oil Production Unit

Profit = Total cost – Total Income = Rs. 36,25,000 – Rs. 32,37,000 = Rs. 3,88,000.

Conclusion of Eucalyptus Oil Manufacturing Business

Eucalyptus oil is an essential oil that has many applications and is used as a natural cure by a large number of people across the globe. Several nations are planning to build units to get oil for treatment purposes. The assembling of fundamental oils is one of the fine business ideas to get huge profits. If you have your land, you can go plan for large-scale and commercial eucalyptus farming and production as well.

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