Hibiscus Oil Project Report, Business Plan

Introduction to Hibiscus Oil Project Report, Manufacturing Business Plan: Hibiscus oil is a perfect herbal oil that is a chief ingredient in several herbal shampoos and conditioners. This oil is extensively used for robust hair growth. The traditional use of hibiscus flowers and leaves resulted in to exploration of the applications of the oil. Previously, the hibiscus flowers were ground to a fine paste, mixed with Hibiscus oil, and applied to the scalp. This hibiscus oil is extracted from Hibiscus rosa-sinensis leaves and their flowers. The Hibiscus rosa-sinensis is available in various colors like red, yellow, white, and pink in which red is the famous one. This plant has amino acids, and vitamins such as C, A, and other important minerals. Vitamin C helps in anti-aging characteristics and antioxidant features are needed for collagen production. Collagen is essential in maintaining young and healthy-looking skin. According to Chinese herbology, Hibiscus rosa-sinensis has numerous medicinal uses. Now, we will elaborate on how we can make gain income from the Hibiscus Oil extraction business in India.

A Guide to Hibiscus Oil Project Report and Manufacturing Business Plan

Hibiscus Oil Manufacturing
Hibiscus Oil Manufacturing (Image credit: pixabay)

Uses and applications of Hibiscus Oil:

  • Hibiscus oil is presumed as the new Hibiscus oil currently. The hibiscus oil is best for hair, skin, and face, etc. The hibiscus oil has several applications but it must be applied with utmost care and with caution.
  • This oil is light and mild and has a high mucilage composition. As a result, the oil is perfectly fit as a moisturizer for the skin.
  • According to Ayurveda, this hibiscus oil is a natural hair tonic as it has several vitamins and nutrients that fortify the hair and reduce hair fall.
  • Many people worry about dry scalp and itching. This oil is useful if properly massaged on the scalp frequently which could decrease dandruff as well as moisturize the scalp.
  • This oil is also used for foot care. The common cracking, scaly, and uncomfortable feet can be reduced gradually by massaging this oil on feet.
  • Hibiscus has anti-oxidants that are important to reduce wrinkles on the skin and could be used as an anti-aging oil.
  • Due to its antibacterial characteristics, it helps in treating injuries or wound healing.

Market Potential of Hibiscus Oil Manufacturing Business

Aromatherapy is an efficient medication for treating several conditions. People suffering from hair loss and split ends regularly apply essential oils. The Burn scars are relieved with aromatherapy products. Aromatherapy is like a substitute for pharmaceutical medications for its various benefits with fewer side effects. The customer inclination for preventive social insurance, the improved lifestyles, are important aspects that drive the global hibiscus oil market. Similarly, the growing cases of depression and anxiety among people are adding to the demand for essential oils. Extensive research is being done to analyze the benefits of essential oils thereby growing the global hibiscus oil market. Marketing hibiscus oil is crucial for gaining profit.

Once the market is set, the requirement for the product will be sustained in health stores and with retailers that were initially contacted. The traditional marketing methods, such as local classified ads, a company website, or approaching local markets with samples. The brand will gain popularity if the quality of the oil is sustained. Consumers begin branding by mouth talk if the oil is advantageous to them. Social media is an outstanding source to promote oil on different websites. The sales could be high if the marketing strategies are properly managed. As this oil is applied in cosmetic products, it is necessary to maintain quality properly. A bad review may result in closing doors and reduced sales.

Business plan for starting Hibiscus Oil Manufacturing Business

Before establishing the business perform a detailed analysis of the cost and take the estimate of expenses to be considered. The analysis should include day-wise activities. After this one must select the name of the business or the brand that is to be produced. Investigate the geographical area closely, and search if the people need this oil at grocery stores, parlors, hospitals, etc. Expand the business by increasing the profit by developing different strategies for sales. The investment to start a business can be calculated by estimating the capital and variable costs such as purchasing machinery, connection for water and power, firm registration, workers’ salaries, etc. The demand for hibiscus oil has been there since ancient times. It developed the scope for entrepreneurs to initiate their businesses and gain huge profits.

Basis and Presumptions of Hibiscus Oil Manufacturing Business

  • Eight hours per day and 300 days per year could be the working period.
  • 18% of oil is extracted from the Hibiscus flowers.
  • The unit can be arranged in a rental location and oil can be collected through the plant setup.
  • Blending and packaging are performed with machines.
  • 12% ROI (Rate of Interest) could be expected on total capital investment. 

Implementation schedule of Hibiscus Oil Manufacturing Business

  • Develop the project report and registration in 1 month
  • Procure the investment in 3 months
  • Purchase the equipment and machinery in 1 month
  • Appoint staff and trial operations in 1 month
  • Plant setup in 1 month

List of registration, license, and permissions required for starting Hibiscus Oil Manufacturing Business

Hibiscus oil is even an important food product, and the business demands various registrations and approvals before starting only. These licenses are commonly based on the location where you intend to initiate the unit. However, it is recommended to contact nearby small business experts and tax consultants.

  • First, you have to think about the management design of your business. And then plan to register accordingly under ROC.
  • Next, apply for MSME Udyog Aadhaar which can be done online.
  • Then, the essential trade license must be gained from the local municipality.
  • The business is classified under the food processing category and thus should get FSSAI consent and could be acquired online.
  • Presently, it is mandatory to apply for GST registration.
  • Open a current account in a nearby bank.
  • Then it is essential to apply for the BIS certification. The Bureau of Indian Standards specification for this item is IS 966:1962. The product should abide by the PFA Act, guidelines
  • Besides, it is important to verify the tax liabilities for this business.

Area required to start Hibiscus Oil Manufacturing Business

For a small-scale hibiscus oil manufacturing business, an area of around 800 – 1000 sq. ft area is required.

Plant setup and machinery required for starting Hibiscus oil Manufacturing Business

The unit could be established with the necessary machinery mentioned below near hibiscus fields.

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

The manufacturing process of Hibiscus Oil

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Hibiscus Flower
Hibiscus Flower (pic credit: pixabay)

The extraction of hibiscus oil is performed by a common process popular as steam distillation. This method is preferred and the promising techniques used for the extraction of oil from plants as distillers will maintain the original properties of the plant. The flowers are washed carefully to remove the dust and then using a paper towel they will be cleaned. A large vessel is placed called a still of stainless steel. The plant material is placed into it for the steam distillation process. When the steam is in contact with plant material, the plant with aromatic oils of molecules transforms into vapor. The condensation flask will have two pipes, one is hot water which exits and the other is with cold water for adding. The vapor after condensation transforms again into liquid form. The liquid form will have the essential oil with traces of water in it. The oil and water will be separated using decantation. The oil that is flowing on water after decantation is gathered and the end-product essential oil obtained is a highly concentrated liquid. The extraction of hibiscus oil using a steam distillation process will be done in 4-6 hours. The oil will be stored in drums or glass bottles.

Some people have been extracting hibiscus oil at home in less quantity by using home ideas. They can simply wash hibiscus flowers and ground them into a fine paste. Next, the Hibiscus oil will be heated and this fine paste will be added to it. Heat the entire mixture for a couple of minutes, once the oil comes to normal temperature, the oil will be transferred to a glass jar and stored.

Hibiscus Oil Project Report/ Economics of Hibiscus Oil Manufacturing Business

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Economics of Hibiscus Oil Manufacturing Business
Economics of Hibiscus Oil Business (pic credit : pixabay)

Land and building construction on a rental basis per month: Rs. 2,500.

Machinery cost:  Rs. 2,39,500.

Pre-operative expenditure:

  • Wooden chulla four nos.: Rs. 2,000
  • Project profile: Rs. 200
  • Travel: Rs. 2,000
  • Regn. With Sales tax: Rs. 2,000
  • Packing advance for plastic containers, and cartons: Rs. 15,000
  • Stationery: Rs. 300
  • Telephone connection: Rs. 3,000
  • Other misc. exp.: Rs. 5,000
  • Total: Rs. 29,500

Fixed capital investment:

  • Machinery: Rs. 2,39,500
  • Pre-operative expr.: Rs. 29,500
  • Total: Rs. 2,69,000

Working capital analysis:

  • Hibiscus flowers 50 tons @ Rs. 2,400/Ton: Rs. 1,20,000
  • Hibiscus oil 500 lit. @ 60/lit.: Rs. 30,000
  • Packing materials (plastic containers, cartons, etc.): Rs. 20,000
  • Total: Rs. 1,70,000


  • Wood 30 quintals @ Rs. 120/QTL.: Rs. 3600
  • Electricity 300 KWH @ Rs. 3: Rs. 900
  • Total: Rs. 4,500

Staff and labour:

  • Skilled labour: Rs. 10,000
  • Unskilled labour: Rs. 7,500
  • Salesman: Rs. 3,000
  • Accountant: Rs. 2,500
  • Peon: Rs. 2,000
  • Total: Rs. 25,000

Other expenses

  • Rent: Rs. 2,500
  • Transport and travel: Rs. 2,000
  • Telephone: Rs. 400
  • Stationery: Rs. 100
  • Publicity: Rs. 1,000
  • Sale tips: Rs. 1,000
  • Other misc. expr.: Rs. 2,000
  • Taxes and levies: Rs. 500
  • Total: Rs. 9,500

Total working capital per month = 1,70,000 + 4500 + 25,000 + 9,500 = Rs. 2,09,000.

Total capital Investment:

  • Fixed capital: Rs. 2,69,000
  • Working capital: Rs. 2,09,000
  • Total: Rs. 4,78,000

Cost of production (Per annum):

  • Depreciation on machinery and equipments @ 10%: Rs. 22,950
  • Depreciation on furniture @ 20%: Rs. 2,000
  • Recurring expenditure (per annum): Rs. 25,08,000
  • Interest on total cap. Investment @ 14%: Rs. 66,920
  • Total: Rs. 25,99,870

Turnover of Hibiscus Oil production

Hibiscus oil turnover 92.4 MT @ Rs. 30,500/ton: Rs. 28,18,200 (Say Rs. 28,20,000).

Profitability in Hibiscus oil production

Profit = Rs. 28,20,000 – Rs. 25,99,870 = Rs. 2,20,130

Net profit ratio = Profit x 100/Turnover = 7.8%.

Break Even Analysis:

Fixed cost (Per annum):

Total depreciation: Rs. 24,950

Interest @ 14%: Rs. 66,920

40% salary: Rs. 1,20,000

40% other exp. Except rent: Rs. 33,600

Rent: Rs. 30,000

Total: Rs. 2,75,470

B.E.P. = FC x 100 / FC + profit = 55%.

Conclusion of Hibiscus Oil Manufacturing Business

Hibiscus oil is popular as an herbal medication in several countries across the world. Many countries are planning to enhance the application of this oil for medical purposes. The manufacturing of essential oils is a fine business proposal that brings good profits. The profitability increases year by year and the most important thing is providing a quality product. The more quality of your product the more profits you gain.

Frequently Asked Questions about Hibiscus Oil Production Business

Common QuestionsExpert Answer
What is hibiscus oil production?It’s the process of extracting oil from hibiscus flowers, known for its benefits in hair and skin care products.
How do I start a hibiscus oil production business?You should begin with a business plan, secure funding, source quality hibiscus flowers, and set up extraction facilities.
What are the benefits of hibiscus oil?Hibiscus oil promotes hair growth, prevents premature graying, and improves skin complexion.
What equipment is needed for hibiscus oil production?Essential equipment includes an oil press, distillation unit, filters, and storage containers.
How much capital is required to start a hibiscus oil business?Starting capital varies but typically ranges from moderate to high, depending on production scale and location.
Where to source hibiscus flowers for oil production?You have to source directly from farmers, wholesale markets, or through agricultural cooperatives specializing in hibiscus cultivation.
What is the extraction process for hibiscus oil?The oil is commonly extracted through steam distillation or cold pressing of the hibiscus flowers.
How to market my hibiscus oil products?You have to market online through e-commerce platforms, attend trade shows, and collaborate with beauty and health retailers.
What are the key challenges in hibiscus oil production?Challenges include sourcing high-quality hibiscus flowers, maintaining production costs, and standing out in a competitive market.
How profitable is the hibiscus oil production business?Profitability can be high due to the growing demand for natural beauty products, with proper marketing and operational efficiency.
What are the legal requirements for starting a hibiscus oil production business?Compliance with local business licenses, health and safety regulations, and specific certifications like FSSAI for edible products is necessary.
Can hibiscus oil be produced organically?Yes, by using organically grown hibiscus flowers and following organic production standards, you can produce organic hibiscus oil.
What is the target market for hibiscus oil?The target market includes consumers interested in natural and organic beauty and health products, as well as salons and spas.
How to ensure the quality of my hibiscus oil?You have to implement strict quality control measures at every stage of production and consider obtaining quality certifications.
What packaging is best for hibiscus oil?Opt for dark glass bottles to protect the oil from light, and consider eco-friendly packaging to appeal to environmentally conscious consumers.
How to conduct market research for hibiscus oil?You have to identify your target audience, analyze competitors, and gather consumer feedback to understand market needs and trends.
What are the export opportunities for hibiscus oil?Investigate international markets with high demand for natural oils, ensuring compliance with export regulations and standards.
How to expand my hibiscus oil product line?You have to consider adding related products such as hibiscus hair conditioners, skin creams, and essential oil blends.
What are the storage requirements for hibiscus oil?You have to store in a cool, dark place to maintain oil quality and extend shelf life, ideally in air-tight containers.
How to price hibiscus oil products competitively?You have to calculate production costs, consider market rates, and position your product value to determine competitive pricing.
How to finance my hibiscus oil production business?Explore options like personal savings, bank loans, government grants, or investors interested in sustainable businesses.
What are the environmental considerations in hibiscus oil production?Implement eco-friendly practices, such as waste reduction and sustainable sourcing, to minimize environmental impact.
How can technology improve hibiscus oil production?Advanced extraction technologies and automation can increase efficiency, yield, and product consistency.
How to build a brand for hibiscus oil?You have to create a strong brand identity, invest in quality packaging, and engage with customers through effective marketing strategies.
What trends are influencing the hibiscus oil market?Growing consumer preference for natural and organic beauty products is driving demand for hibiscus oil.
How to navigate regulatory compliance in hibiscus oil production?Stay informed on industry regulations, ensure product safety and quality, and comply with legal standards for production and labeling.
How to handle logistics and distribution for hibiscus oil?Partner with reliable logistics providers to ensure efficient distribution, considering the fragility and shelf life of the product.
What is the shelf life of hibiscus oil?Properly stored hibiscus oil can last up to two years, depending on the extraction method and storage conditions.
How to ensure customer satisfaction with hibiscus oil products?Maintain high product quality, offer excellent customer service, and actively seek and respond to customer feedback.
Can I apply for government grants for my hibiscus oil production business?Explore government schemes and grants aimed at supporting small businesses, agriculture, and sustainable projects.


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