Ginger Oil Making Project Report, Business Plan

Ginger Oil Making Project Report, Business Plan


Hello friends, today we are here with a new topic called “Ginger Oil Making Project Report.” The ginger oil is present in the epidermal tissue of ginger. You can extract ginger oil in more quantities from the distillation of unpeeled ginger compared to peeled ginger. Ginger oil has a delicate aroma and taste with many benefits.

Ginger is one of the oldest spice with many medicinal values and is used in different cuisines. Ginger has a warm pungent taste along with a pleasing odor because of which it is extensively used as a flavoring agent in many food items such as beverages, soft drinks, gingerbread, pickles, and soups.

There are two sorts of ginger, one is fresh ginger which is green in color and the other is dried or cured ginger which is used as a spice. This dried ginger is used for extracting oils, oleoresins, and others through distillation.

Ginger oil is mostly used in baked products, confectioneries, and even in beverages.  Ginger oil is extracted from the herb ginger which is a rhizome. It has a peculiar hot and pungent taste compared to other spices. Due to the presence of the compound named gingerol. This gingerol in ginger has numerous health benefits and hence it is also used in Ayurvedic medicines.

A step-by-step guide to Ginger Oil Making Project Report and Business Plan

Ginger Oil
Ginger Oil Making Project Report and Business Plan (pic source: pixabay)

Benefits of Ginger Oil

The volatile oil of ginger shows several outstanding advantages for the well-being of mankind. The oil content depends upon the color tones of ginger that is from straw to a dark amber color. The oil viscosity differs from medium to watery based on these colors. Ginger oil is enriched in a mesh of chemical components such as α-pinene, camphene, nerol, 1, 8-cineole, β-pinene, borneol, geranial linalool, γ-terpineol, neral, geraniol, β-bisabolene, geranyl acetate, and zingiberene. The ginger volatile oil is extracted through steam distillation from the basis of the plant. It has even blended with different essential oils to obtain various mixtures to use them in various ailments.

Ginger has its application even when it is mixed with fever tree eucalyptus, atlas cedarwood, geranium, frankincense, lime, Roman chamomile, lemon, rose, rosemary, and sandalwood. The processing of ginger products is a vital practice in any food processing industry. The requirement for ginger oil is growing rapidly. It is even possible to plan for exporting along with catering to the domestic market.

Ginger is one of the essential and oldest spices used in every food recipe. It has a warm pungent taste and an appealing odor thus it’s extensively used as a flavoring agent in different food preparation and beverages, soups, gingerbread, pickles, and soft drinks.

Market potential of Ginger Oil Manufacturing Business

Fresh green ginger is used for the preparation of candied ginger (in sugar syrup). Fresh ginger has been employed for preparing ginger wine or used as a beverage in some regions. There also are different uses of dried ginger. Ginger oil viscosity even ranges from medium to watery. It is a well-established fact that India is that the largest producer of ginger in the entire globe and involved in the export of three of its forms. They are Fresh (green), pickled or processed, and dry.

There is a great demand in the market for both green and dried ginger products. Ginger oil is widely used in the preparation of baked products, beverages, and confectioneries because of its unique taste, odor, and aroma. It is also used in a few perfumes as it has anti-bacterial anti-fungal properties. Because of these uses, the demand for ginger oil is increasing and is estimated at 517.68 tons per year.

This demand is predicted to increase more than 4,212 tons by 2022. Even though it has high demand in the market, the extraction procedure is a bit difficult task but it can be managed by purchasing automatic ginger oil extraction machines. This can be considered as a potential venture for the young entrepreneurs to start the project.

The increasing demand in the market because of the health benefits it has stable growth compared to other oils. Because of the increase in health-conscious among people, there is high demand for natural oils and their products in the market. This is the main reason for the growth of demand for essential oils which resulted in happy manufacturers. This clarifies the particular reason to start with the production of ginger oil. The expansion of natural products in the market is highly demandable and you can earn huge profits from it.

Market demand of Ginger Oil Making Business

Ayurveda treatments and aromatherapy are considered as best medical treatments in the present market. An altered and hectic lifestyle is leading to mental stress, anxiety, and other health problems, where aromatherapy and Ayurveda have been a one-stop solution for my consumers. Ginger oil is seen in medicines with various other essential oils, this is often another aspect driving the market and demand for ginger oil production.

Licenses and approvals required to start a Ginger Oil Making Business

While setting up your, your primary step should be the registration of your firm with ROC. This registration could be done based on the capital, size, and management pattern of your business. You can opt for partnership, proprietorship, LLP, or as a One – Person Company.

A trade license must be acquired from the Local Municipal Authority and Udyog Aadhaar Registration is available on the portal of MSME.   You must also get a commercial power connection for your unit.

Guide for Ginger Oil Manufacturing Process

Step 1: Dry ginger is milled using a grinder according to the necessary mesh size. Next, the steam is fed into an evaporation container with ginger powder and water.

Step 2: The extracted ginger powder is placed on a grid that has a specific distance from the water level which is the lowest level in the vessel.

Step 3: The water vaporized flows to the above ginger powder by steam through a coiled pipe which is submerged in the water. The vapours are collected and passed through the condenser which is separated by decantation in a Florentine flask.

Step 4: The essential oil is collected at the upper layers and the water is left at the lower side of the flask. Then to separate these two the second distillation process is done as the water contains some soluble parts of the ginger oil.

Ginger oil is usually extracted from the dried rhizomes of ginger. The left over rhizome powder post extraction step of essential oil comprises 50% starch content and can be suitable as animal feed or sometimes it is dried and used as low quality spice. Sometimes, the re-distillation process is repeated for the utmost yield. Dried ginger has more percentage of oil content compared to fresh or green ginger.

Machinery required for establishing a Ginger Oil Manufacturing unit

Here is the important machinery needed to start manufacturing of Ginger Oil:

Evaporator Vessels: The steam, generated during a boiler is fed into an evaporation vessel which has ginger powder and water.  As water still includes some soluble parts of the oil, it is sent again to the evaporator container to get the soluble ingredients through the second distillation step.

Condenser (water-cooled): It is used for condensing the steam and for extraction of the condensate.

Florentine flask (SS): Finally, the condensate is removed by decantation process during a Florentine flask because the oil will be in smaller quantity and dense than water

Cooling system: It will help the condenser while condensation process for transfer of heat and cooling water.

Pump: A pump is used for extracting oil.

Grinder: It helps to ground ginger.

Submersible pump: To extract the needed water from rock bottom.

Boiler: Boilers have been used in power plants to supply high pressured steam for generating electricity. The boiler gains energy by combustion of coal, gas, or some fuel for heating water that is used to obtain steam.

Ginger Oil Making Project Report/ Economics for establishing a Ginger Oil Production Unit

In case if you miss this: How To Start A Body Lotion Making Business.

Raw Ginger

Ginger Oil Making 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.

Ginger Oil Making Project Report – Working Capital

  • Raw Materials: Rs. 88,000
  • Power & Utility: Rs. 10,000
  • Salaries: Rs. 74,000
  • Finished Goods: Rs. 1,34,000
  • Receivables: Rs. 1,49,000
  • Total: Rs. 4,58,000.

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

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

Income per annum in Ginger Oil Making Business 

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

Ginger Oil Making Project Report – Profit in Ginger Oil Production Unit

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



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