How to Make Money from Lemongrass Oil Extraction  

Introduction to make money from extraction of lemongrass oil

Lemongrass essential oil is one of the most popular ones which is used by many people. This oil is extracted from stalks and leaves of the lemongrass plant. This grows mainly in tropical and subtropical parts of the world.

It was traditionally used as a flavoring agent in foods, desserts, and drinks, but now we can see it in soaps and other personal care products. This oil is also used as a medicine for pain relief, fever, stomach problems, etc, but due to its anti-inflammatory, antioxidant, and anti-fungal properties, it has some other benefits.  The benefits can be listed below:

Lemongrass oil for skincare

This herb consists of vitamins A and C; it helps to boost skin and hair. Beyond that, it helps to clean pores on the skin and keep oil levels balanced. The steam with this oil can be used frequently for the best results.

Lemongrass essential oil for relaxation

It is used a lot in aromatherapy by which it reduces anxiety and promotes calm feelings. Having regular massages will help to aid restful sleep and help those who suffer from insomnia.

Lemongrass oil as a mosquito repellant

To keep pests away this lemongrass oil with a property of citronella is widely used. When the weather gets warm, pests can start to cause nuisance diffuse Lemongrass to repel insects. This is a friendly way to get rid of critters as diffusing the oil won’t harm insects it will just deter them and send them on their way.

Lemongrass oil for freshening environment

The scent and antibacterial properties of lemongrass essential oils are added for the cleaning routine. To freshen a room make a homemade air freshener by adding to a spray bottle with water to get instantly freshen the air. Diffuse a few drops in an oil burner for a more intense aroma.

This oil is used in lotions and creams that prevent wounds from becoming infected in which it acts as an antiseptic. It can also be used to treat muscle pain, relieve headaches, soothe indigestion, etc. This oil consists of a strong lemon odor which has 70% to 75% of citric content. This is an essential ingredient in soaps, bath salts, etc. so let’s explore how to start a small scale lemongrass oil manufacturing business.

An idea to start a lemongrass oil extraction business in India

In case if you miss this: How to Make Money from Rosemary Oil Extraction Business.

Lemongrass Oil Extraction Process.
Lemongrass Oil Extraction Process.

The demand for aromatic cosmetics is increasing day by day. The awareness about the advantages of essential oils is growing and consumers are conscious about harmful products of chemical cosmetics.

The oil is of a reddish-yellow to reddish-brown color, with a strong, lemon odor. It is also used in pharmaceutical preparations, such as pain balm, disinfectants, and mosquito repellent cream.

Farmers are showing more interest in producing lemongrass. This demand created many entrepreneurs to enter the business world and start manufacturing lemongrass oil.

Create a business plan to make good money from lemongrass oil extraction

As this oil has huge demand one must plan his business in such a way to be successful.  Before starting this business do some research to target the market. The demand, as well as competition for this essential oil, is huge. So, this research can help to set up the business and run it successfully. Make a detailed analysis of the business plan and include day to day activities in detail.

The small scale business can be started by the form of a sole proprietorship. In this form of business, no registration is required. The trade license must be obtained from local municipal authority. This form of business is simple and inexpensive. But when one is willing to go for a large scale then it is necessary to determine the form of business. The business can be registered as a partnership firm if one wanted to share the profits. The registration is optional here. The business can be extended more by forming a Company. To register as a Company the provisions under Companies Act, 2013 should be followed. The registration process here is not simple and many filings should be done to Register of Companies ROC.

An application must be sent to ROC with the required documents. The ROC will verify them and register the Company.

License and other permits for lemongrass oil extraction business

To start a business one must obtain a trade license from the local authority. The state government is authorized with the task of issuing trade licensee, granting permission to carry out the trade. This document ensures the business is carried out in accordance with relevant rules and standard guidelines. In India the government has authorized the licensing department of Municipal Corporation, to issue a trade license.

Along with a trade license, if any other permits required, it should be obtained.

If one wanted to sell the oils for flavoring the food, then it is mandatory to apply for an FSSAI license.

The Food Safety and Standards Authority Act is an act used to secure the laws relating to food and to establish standards for food to control their manufacture, storage, distribution, sale, and import, to make sure the availability of food for human consumption and other food-related issues. FSSAI registration is basically a 14 digit registration number that is used by the food-related businesses.

If one is involved in manufacturing oil for cosmetics or drugs then it is mandatory to obtain a license under the Drugs and Cosmetics Act.

The property must be insured to claim the damage or loss. An insurance agent will advise about the options and one can choose the best plan.

Marketing strategies of lemongrass essential oil

The market for this oil is already high, so it is easy to enter the market and sell the product. But to increase sales and for future business, the marketing techniques must be followed to defeat the competitors. Advertise the product with the brand if a brand name is created. Creating a brand name tends to increase productivity. Being socially active and accepting online orders can fetch good results.

The raw material required for the extraction of lemongrass oil

The major raw material is lemongrass. The grass plants grow well in soils not suitable for richer production plants. The sandy and dry soils yield relatively more oil than plants from very fertile soils. A lemongrass plantation has a life cycle of 6 to 8 years. The oil yield reaches its maximum around the third or fourth year and its annual average value ranges between 15 and 20 kg/ha with three crops per year. Therefore, one needs to procure about 288 kg of lemongrass to produce 1 kg of essential lemongrass oil.

Plant setup and machinery for extraction of oil

The below-mentioned plant and machinery should be established at a nearby lemongrass plant filed. For small scale operation, 1000 s.ft area is sufficient.

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

How lemongrass oil is extracted?

The lemongrass oil can be extracted from dried lemongrass leaves or fresh leaves. The percentage essential oil yield for partially dried leaves is more than for the fresh leaves.

Steam distillation is the common method for the large scale lemongrass oil production. First of all, one needs to produce steam in a boiler. Then introduce the steam into the vessel which contains the leaves and water. Then locate the leaves on a grid placed at a distance above the level of the water which fills the bottom of the vessel. The water is vaporized by steam flowing in a pipe coil to the water.

You may also check this: How to Make Money from Gardening Service.

The water vapor and the distilled oil coming from the evaporator vessel is recovered in a separate water-cooled condenser. Then separate the mixture flowing out of the condenser by decantation in a Florentine flask. The lemongrass oil floats at the top. It can be separated easily. However, the distilled water still contains some soluble parts of the oil and therefore is sent back to the evaporator.

The cost to start a lemongrass oil extraction business to make huge money

The cost may vary from small scale to large scale business. The investment required to start lemongrass oil extraction business may range from 21 lakhs to 25 lakhs which is listed below:

  • premises- Rs. 2,00,000 to Rs. 2,50,000
  • Registration and license cost- Rs. 1,50,000 to Rs. 2,00,000
  • Cost of machinery- Rs. 5,00,000 to Rs. 5,50,000
  • Water and electricity- Rs. 90,000 to Rs. 1,10,000
  • Marketing and advertisement expenses- Rs. 2,00,000 to Rs. 3,00,000
  • Manpower- Rs. 2,00,000 to Rs. 3,00,000
  • Any miscellaneous expenses- Rs. 1,00,000 to Rs. 1,50,000.

Storage and packing of lemongrass oil

The oil can be stored in glass bottles or containers made up of stainless steel or aluminum, depending upon the quantity of oil to be stored. The oil should be filled up to the containers should be kept away from direct heat and sunlight in cool/shaded places.

The price of lemongrass oil

The price of this oil varies from different brands. Based on brand the price tends to be fixed. The minimum price of 15ml lemongrass essential costs around Rs. 300- Rs. 350. These oils are easily available online and also available in stores.

How to use lemongrass essential oil?

The lemongrass oil can be bought online or from health stores. One should never apply undiluted essential oils on the skin or into their eyes, mouth, ears. Misusing this oil can result in burns on the skin, poisoning, etc. These oils cannot be taken directly without the guidance of health care professionals. This oil may cause irritation on skin and rashes. One must avoid applying this oil if they have allergies, broken or damaged skin. This can be checked before use by doing a skin patch test on a small area of skin, then wait 24 hours to see if a reaction appears before applying the diluted oil.

Many of the studies on lemongrass essential oil have been in test tubes or animal models, so further research is still necessary to find out more about the benefits of lemongrass essential oil on humans.

The side effects of lemongrass essential oil

Lemongrass oil may cause more allergic reactions than any other essential oils if they are not used properly. The following points to be noted before using the oil:

  • These oils should not be used near eyes, mucous membranes.
  • It should be out of reach from children and pets.
  • Do not ingest essential oil.
  • Wash the hands after using essential oils.
  • Do not use essential oil diffuser for more than 2o to 30 minutes.

The conclusion of the extraction of the lemongrass oil business to make good money

The manufacturing of oil from lemongrass is one of the greatest business ideas to make huge money. So, the above benefits of lemongrass oil created opportunities for entrepreneurs to start the lemongrass oil extraction business. This business is highly profitable if one does not comprise quality. We wish you good luck to make money from the lemongrass oil extraction business. You may also check Growing Lemongrass from Seed, Cuttings.


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