Geranium Oil Project Report, Business Plan

Introduction to Geranium Oil Project Report, Business Plan: Essential oils currently have a huge demand in the market. The requirement is growing day by day as customers tend to use them frequently for their basic needs. This developed an opportunity for the businessmen to initiate their business for products that have high demand in the market.

The geranium essential oil is obtained using the flowers and leaves of the Pelargonium graveolens plant. This oil has many health advantages. The geranium flowers are rich and perfumed. The rose-like aroma is majorly used in perfumes and blends along with various other oils. Geranium oil is used by a large population as it has an essential ingredient that is added to perfumes, household items, cosmetics, etc. Now, let us get into the details of the economics and the Geranium oil project report.

Economics and Geranium Oil Project Report, Geranium Oil Manufacturing Business Plan

Geranium Oil
Geranium Oil (Image source: pixabay)

The market potential for Geranium Oil Manufacturing Business

Aromatherapy is seen to be an efficient medication for several conditions. People with skin break-out issues usually apply essential oils. The Burn scars can be healed with aromatherapy oils. Furthermore, injuries due to burns get healed as well. Aromatherapy is widely chosen compared to pharmaceutical medications as they have more advantages and low or no side effects.

The customer inclination toward preventive medical treatment, the improved lifestyles, are important aspects that have the driving impact on the global geranium oil market. Likewise, the growing examples of depression and anxiety in people have also augmented the use of essential oils in aromatherapy sessions. Broad research is actively performed to study the benefits of essential oils leading to an increased demand for the global geranium oil market.

Marketing geranium is very essential for earning profit. Once the market is set, the need or requirement for the product will be there in health stores and grocery stores which are the primary dealers for these items. One can also market geranium using other modes, like publishing in local classified advertisements, designing a company website and promoting, or approaching the local markets. The brand can be sustained mainly by the quality of the oil. Consumers start from their end if the oil proves to be of superior quality and serves the purpose. Social media is no doubt a good source to advertise the oil on several websites. The sales will be enhanced if the marketing policies are efficient. As this oil is even used for cosmetics it is essential to maintain it properly. Any bad review may be threatening and declining sales.

Uses of Geranium Oil

  • The geranium is chiefly used in massages. It gives grounding and calming impact for the emotions and also the skin will get healthy. For best results, the geranium essential oil is mixed with lavender or coconut oil.
  • The hair can be improved with the supplements that are provided by geranium oil. Adding a few drops of this oil along with shampoo and conditioner can gain visible results. It can be used every day so that the aroma of geranium oil will be there all day long.
  • The daily skincare routine could be improved with this oil when used in a small quantity. For healthy- and good-looking skin as well it has revealed perfect results. One can add geranium oil to the skin as a spot treatment by adding it to the face along with a cleanser and wash your face twice a day. Many consider this oil as the substitute for any anti-aging cream or lotion and to clog pores.
  • To avoid away insects, cotton-dipped geranium oil could be used by keeping them at the corner of the room. It acts as a natural repellant.

Business plan for starting Geranium Oil Manufacturing Project

  • Before beginning, this business one should draft a proper business plan that comprises finance and marketing policies.
  • Perform proper market research. Get an idea about how the business is expanding in the local market and the requirement for those products.
  • To arrange this business the amount needed that could be availed by bank loans or may try to approach various other financial establishments.
  • Then, obtain necessary licenses and approvals based on the concerning state laws.
  • Next set up an oil extraction manufacturing unit
  • Before establishing a business, perform detailed research of the expense and prepare a proper estimate of the entire cost. The analysis should have the day-wise activities as well. Later, select the name of the brand or your firm which you are planning to start. Verify the geographical area and check if there is any demand for this oil at retailers like grocery stores, healthcare facilities, parlors, etc. The complete cost to start a business is analyzed by keeping in mind the expenses incurred for equipment purchase, power supply, and water connection, firm registration cost, employee salaries, etc.

List of approvals required to start Geranium Oil Manufacturing Business in India

The first step is to acquire the below list of licenses, permissions, and registrations for starting Geranium Oil Manufacturing Business in India-

  • 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

Area required to start Geranium Oil Manufacturing Business

The unit with listed essential machinery must be set up close to its cultivating farm. For small-scale business around the 1000 sq. ft. area is enough.

Machinery and equipment required for starting Geranium Oil

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

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

The manufacturing process of Geranium Oil

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

Geranium plant
Geranium plant (pic credit: pixabay)

The regular method to extract oil from the geranium is steam distillation. A large container is kept called still which is built of stainless steel. The plant material is introduced to it for the steam process. When the steam is added to plant material the plant with aromatic oils of molecules will become vapor. The condensation flask will have two pipes, one is for hot water which exits, and the other having cold water which should be poured. The vapor after condensation transforms into liquid form. The liquid form has essential oil with water in it. The oil and water are separated by the decantation process. The oil which is flowing on water after decantation is collected and the resulted essential oil is a very concentrated liquid. The extraction of geranium oil by steam distillation method will last for 4-6 hours. The oil is kept in drums or glass bottles that are made of steel and aluminum.

Why steam distillation is used to extract Geranium Oil?

Steam distillation is the method that is performed to separate the materials that are not soluble with water, volatile in steam, and which has a high vapor pressure at the boiling temperature of the water. The steam is regulated at the steam distillation. On a large scale, steam distillation is applied for extracting oils from the plant material.

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

Geranium Leaves and Flowers
Geranium Leaves and Flowers (pic credit: pixabay)

1. Land and Building with covered area of 200 Sq. mtrs. On rent

2. Plant and Machinery

(a) One Disintegrator/Burster with 15 HP motor and other accessories: Rs. 1,56,000

(b) One Decorticator with 30 HP Motor and other accessories: Rs. 2,76,000

(c) One Turbo cleaner with 15 HP Motor and other accessories: Rs. 1,62,000

(d) One Screener with 2 HP Motor and other accessories: Rs. 42,000

(e) One Baling Press with 5 HP Motor and other accessories: Rs. 1,38,000

(f) Two Retting Tanks: 2.5 M x 1.M x1.5M: Rs. 18,000

Total: Rs. 7,92,000.

3. Miscellaneous Fixed Assets

(a) Electrification: Rs. 1,65,000

(b) Water Installations: Rs. 44,000

(c) Miscellaneous others: Rs. 55,000

Total: Rs. 2,64,000

4. Provision for contingencies: Rs. 49,500

5. Preliminary and Pre-operative expenses: Rs. 60,500

Total fixed Costs: Rs. 12,00,000.

6. Working Capital:

(a) One month Raw Materials: Rs. 1,89,292

(b) One month Power cost: Rs. 17,585

(c) One month Wages and Salaries: Rs. 35,750

(d) One month other expenses: Rs. 54,450

Total Working Capital: Rs. 2,97,077

Total project cost: Rs.14,97,077

(Say Rs.14,97,000)

Profit in Geranium Oil Making Business in India

Annual Sales Realization: Rs. 20,00,000

Profit = Sales – Project Cost = Rs. 20,00,000 – Rs. 14,97,000

Profit per annum = Rs. 5,03,000.

Conclusion of Geranium Oil Manufacturing

The manufacturing of oil from geranium is even a popular business idea to gain huge income. Geranium oil provides several opportunities for entrepreneurs to begin their own geranium oil extraction business. This business gives you high profits if accurately provide the superior quality of the product. Based on this you can also get an idea to start commercial farming of Geranium which will minimize most of the expenses especially related to machinery set-up, etc.



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