Garlic Oil Project Report – Business Plan

Garlic Oil Project Report, Manufacturing Business Plan


Garlic is one of the essential bulb crops cultivated and used as spice and condiment across many parts of India. It comprises medicinal properties and is rich in nutritional elements. Allicin, the principal component of garlic has antibiotic characteristics. The plant is a small herb and develops a cluster of small bulbs referred to as cloves having thin skin over them. The seed stalks include both seeds and bulblets in the same head. However, the seed is rarely found for propagation and the cloves are mostly used. Oil is one of three major categories of food substances; protein and carbohydrates are the others. Garlic oils are naturally found esters of glycerol along with fatty acids that have commercial applications, some oils are known as trimesters such as triglycerides or simple glycerides.

The physical and chemical characteristics of garlic oils are identified mainly through the kind of fatty acids in the glycerides. In all commercially significant glycerides, the fatty acids are straight-chain and nearly all include an even number of carbon atoms. Garlic helps the body by lowering high blood pressure, avoid heart disorders and atherosclerosis, boosts circulatory systems, enhance the immune system, and cases are there wherein it contributes to preventing cancer. The increasing importance of natural extracts as pharmaceutical and natural cosmetic aid and their use as nutraceutical ingredients in recent times has opened up new vistas for this segment besides their extensive use as flavor and fragrance elements. India will play a leading role in the manufacture and handling of these natural extracts. The country’s biodiversity along with extensive scientific data will drive the nation to be in the first position and lead the aroma business in the coming future. Hence, it is evident that tat garlic oil manufacturing is a profitable business if planned properly.

Uses of Garlic Oil

Garlic is consumed orally and prevents high blood pressure, avoids heart disease, helps in treating earaches, boosts the immune system and stimulates circulatory systems, and is seen to prevent cancer. Other benefits include curing diabetes, colds and flu, arthritis, fighting stress and restlessness, and maintaining liver physiology in a good manner. Garlic is also rich in protein and Vitamin B, thiamin and riboflavin, and few trace minerals like zinc, calcium, tin, potassium, germanium, aluminum, selenium, and sulfur.

A guide to Garlic Oil Project Report, Manufacturing Business Plan

Garlic Oil
Garlic Oil (Image credit: pixabay)

Market potential of Garlic Oil

Garlic oil is distributed based on the area of application, sales channel, and region. Based on the area of application the global garlic oil market is classified into, food and processing industry, domestic usage, and pharma sector. 

In the food industry garlic oil is employed for seasoning and flavoring. Garlic flavors provide seasoning in vinaigrettes, salad dressing, and sauces, shrimp, beef, among other foods thus imparting an ideal odor and taste to the recipes. While in the pharma sector, garlic oil is useful for treatment in ear infection, cold, and congestion, fungal infections, bronchitis, tuberculosis, cardiovascular disorders, etc. according to the latest research published in the science journals.   

Based on the sales network, Garlic Oil is segregated into supermarkets, specialty stores, retail stores, online retail, and other retail stalls. The major component of revenue is expected by the hypermarkets, the online retail is estimated to gain significant shares in the overall garlic market in the coming years gradually.

Based on the area, the global garlic oil market is distributed into India, North America, Europe, Latin America, Asia Pacific, and the Middle East, and Africa. Globally top countries growing garlic are South Africa, Taiwan, China, New Zealand, and India. It is analyzed that India contributes as the major region that accounts to grow about 90% of the garlic cultivated commercially in India.

Business plan for starting Garlic Oil Manufacturing Business

Before planning for the garlic oil manufacturing business perform a proper analysis of the costs and add them in the expenses section. Next, the individuals could choose the name of the form of business organization or the brand that will be relevant. Try to verify the nearby land for unit set up, keep on looking about a suitable location for this oil. The expenses for starting a business can be analyzed by checking over the capital and variable expenses such as hardware purchase, water, and power connection, location rent, and staff salary, and so on. It will give a clear picture to business entrepreneurs to initiate an oil business and get money-spinning advantages.

Basis and presumptions of Garlic Oil Manufacturing Business

  • Number of Working Days in a year: 300 Days
  • Number of Shifts in a day: 3
  • Hours in a Shift: 8 hours
  • Plant Capacity: Consider on average production capacities of the plant.
  • Raw material availability
  • Depreciation: Straight-line method
  • Manpower: According to project requirement
  • Rent estimate: On the basis of the current market price of the area.
  • The potential area of marketing Garlic Oil: Local market and households.
  • If the project is funded, a term loan would be: 80% of the total investment
  • Moratorium period:  6- 12 months
  • Repayment period: 5-7 years

Implementation schedule

Proposed Garlic Oil Project Report can commence production within 10 weeks after the approval and first release of the term loan.

List of license and approvals required to start Garlic Oil Manufacturing Business in India

While establishing your business your primary goal should focus to register the firm with ROC. This registration is determined by the investment pattern, scale of the business, and management pattern of your venture, etc. You can opt for the business as a partnership, proprietorship, firm, or as a Person Company. The trade license can be obtained from the Local Municipal Authority which is equally important as the Udyog Aadhaar Registration which can be acquired online from the MSME portal.  

Other important lists of licenses, permissions, and registrations required to start a Garlic Oil Making 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

List of equipment and machinery for the extraction of garlic oil

  • The details about the unit and machinery for extracting garlic oil are stated below:
  • The Equipment structure of garlic oil extraction is mentioned below:
  • This machine is built with treated steel with a special frame.
  • It comprises three layers plate refining framework and a Special condenser structure that can extract the oil productively.
  • This machine holds the Digital control framework and touch screen segment that showcases the control framework.
  • Energy enhancement substitutes Electricity, gaseous petrol, gas, steam, wood, etc.

Raw materials required to start Garlic Oil Manufacturing Business

In case if you miss this: Soap Manufacturing Poject Report.

Garlic Cloves
Garlic Cloves (Pic source: pixabay)

The major raw materials required to start Garlic Oil Manufacturing Business is fresh garlic cloves.

Manufacturing process of Garlic Oil

The extraction of garlic oil is taken care of by steam refining process with the use of n-hexane as solvent. Garlic comprises oil that is extracted from garlic cloves by modified hydrothermal distillation procedures which may be useful if commercial extraction of garlic is done. Essential oil extraction through garlic cloves was performed at different combinations of temperatures.

The preparation steps before extracting garlic oil are performed to start a proper extracting process of garlic oil. For this step, the garlic is selected which is separated from and we obtain the garlic cloves. Proceed with the cleaning of the garlic cloves using clear water flushing with the garlic cover stripping. At that segment, stop the water and maintain temperature up to 65-75 ℃ to remove all the moisture and dry it completely. The Garlic powder is kept in the hermetically sealed chamber to infuse and preheat to 65 – 75℃ ethanol, squelch after the entire blending. The fluid is placed put into a vacuum tank to obtain a cryogenic vacuum and focus to obtain thick garlic oil. The steam of around 4 – 10 minutes is passed and later the oil gets acquired on the top layer. The oil is separated and stored in barrels or compartments.

Garlic Oil Project Report/ Economics of Garlic Oil Manufacturing in India

Garlic Oil Project Report – 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

Garlic Oil Project Report – 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

Garlic Oil Project Report – Total cost of Garlic Oil Making Business 

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

Garlic Oil Project Report – Income per annum in Garlic Oil Making Business 

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

Garlic Oil Project Report – Profitability in Garlic Oil Production Unit

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

Marketing and advertising strategies use in promoting your Garlic Oil

Marketing and the advertising of garlic oil are very essential steps after extracting the oil. The resultant garlic oil is kept aside and is made much perfect and refine the particulars. The oil is pressed in containers or barrels accordingly to the quantities and sent to the customers who have ordered. The promotions can be endorsed by going for specific deals productively. Even, one can approach the nearby shops and markets to develop contacts. They can start as a new brand for the oil and sell with that name in the market. The brand can be advertised online through websites, social media, etc. The traditional promotions on TV and print media could be sought for advertising the produced garlic oil.


Garlic leek oil market is extending its wings in every sector, business, many people have started this business and generating income. To decrease input expenses and increase income, you can even plan for commercial Garlic Farming.


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