Rose Water Project Report, Manufacturing Plan

Introduction to Rose Water Project Report, Manufacturing Business Plan: Have you ever felt the smell while walking in a garden, or attracted for its aroma, its delicate and revitalizing scent, and thought of the business opportunities which this small-decorative-red-flower has for an individual looking for some potential business?

In this article, you will have all the important facts and essential aspects for gaining knowledge in starting this Rosewater making business.

A guide to Rose Water Project Report, Manufacturing Business Plan, Making Process

Rose Water Manufacturing Process — **Rose Water** (Image source: pixabay)

Uses of Rose Water: Rosewater is basically a flavored water prepared by using steeping rose petals with water. It has antibacterial, inflammatory, moisture retention characteristics that is driving its application in different areas.

Apart from this, the potential of Rosewater based on the variety of rose used in industrial rose water making, the kind of rose water product required, and the applications of the rose water by different set of consumers in the global and Indian markets.

The types of Roses used in Rose Water

Red rose of France
Rose Demasina ( sucha gulab )
Rosa centifolia
Grass-en-tapliz

Essentials for preparing different rosewater products

Rose perfume: rose oil
In mouth wash: rose water and rose oil
Rosewater: rose petals and rose water
In face creams: rose petals and rose water
Rose jam: rose petals and rose water

Uses of rosewater can be seen in the following precisely

In flavor food
While performing religious rituals
In cosmetics as face toner
For making scents
In preparing flavored beverages
For preparing some medicines
In skin therapies such as for inflating and blemishing pimples and acne scars.

Business plan for starting Rose Water Manufacturing

First you to craft a perfect business plan for starting any kind of business unit which includes:

Market potential of Rose Water Manufacturing Business
Implementation schedule of Rose Water Manufacturing Business
List of approvals required of Rose Water Manufacturing Business
Area required for starting Rose Water Manufacturing Business
Raw materials required for starting Rose Water Manufacturing Business
List of machinery required for starting Rose Water Manufacturing Business
Manufacturing process of Rose Water
Project economics of Rose Water Manufacturing Business in India
Profitability in Rose Water Manufacturing Business

Implementation schedule of Rose Water Manufacturing Business

Market analysis and demand, applying for loan 0 – 1 month
Preparation of business plan 1 – 2 months
Financial support or investment 2– 4 months
Selection of location and establishment of unit 3 – 4 months
Power and water connection facility: 4 – 5 months
Building construction and shed development 5 – 6 months
Machinery and equipment purchase 6 – 7 months
Procuring raw materials and recruiting of manpower 8 – 9 months
Trial operations 10th month

Market potential of Rose Water Manufacturing Business

The soil conditions and weather in Iran is appropriate for the most authentically produced rosewater and next is seen in few places in India. This product has been governing various markets because of its wide applications from skincare to recipes several and religious rites as well.

This product is highly seen in various places in world and 1.2 USD million worth rose water is exported by India to almost 110 countries water during 2019-2020.

The market potential for the Rosewater making business is so high that Repots have stated that due to the high market potential of Rosewater making business, India produced about 675630 MMT in 2018.

Benefits of Rose Water Manufacturing Business

The business model of a rosewater making business is illustrated with 4 variants

Value proposition: The value proposition which the rosewater business is predicted to provide to you is.
The raw materials are available easily and the cost for manufacturing is less but the sales are expected to be high.
The extensive applications of rose water in different areas and products.

List of registration and license required for Rose Water Manufacturing Business in India

For starting a Rose Water Manufacturing unit without any legal issues, one should obtain some important permissions and licenses from the government authorities. It varies depending on the specific region where the unit will be located. Additionally, if are willing to manufacture cosmetic items then you must apply for even more particular licenses. Here, we have mentioned some significant requisites for the processing of concentrated Rose Water using Rose petals.

First of all, you the business must have registration. According to the management pattern, select the right pattern of business.

Moreover, it is important to apply for a trade license and professional tax application.

Apply for Pan Card.
Approach nearby bank to open a current account
Next, get the MSME Udyog Aadhaar registration done through an online platform
Apply for factory license by approaching state authority.
Importantly, you must avail of ‘NOC’ from the State PCB (Pollution Control Board).
Finally, see the tax obligations and yearly compliance charges.
Register your business identity
GST registration
ROC
Get the PAN Card
Registration of firm
Shop Act License
IEC Code
Export License
Fire and Safety
ESI
PF
No Objection Certificate from pollution board
Trade license from local municipal authority

Area required to start Rose Water Manufacturing Business

Approximately 200 sq. ft. area is sufficient for Rose water Manufacturing Business.

Raw materials required to start Rose Water Manufacturing Business

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The raw materials necessary for beginning a Rosewater Manufacturing Business are

Rose petals
RO water
Water
LPG
Carton boxes
Packaging bottles

Machinery required for starting Rose Water Manufacturing Business

The important machinery required for establishing this business is

Pressure cooker
Weighing machine
Boiler

Manpower required to start Rose Water making Business

The staff chiefly needed for arranging the rosewater making business is

1-skilled people
2-unskilled candidates

Moreover, appropriate training to these workers has to be given in the following aspects.

Usage of Machinery
Equipment operation
Safety and precautionary measures

Rose Water Project Report/Economics of Rose Water Manufacturing Business

Fixed Capital

a. Land & Building: 600 Sq ft @ Rs. 10,000 Rented

b. Machinery and Equipment: Rs. 4,25,000.

Working Capital

A. Staff and Labor: Rs. 1,72,000

B. Raw material per month: Rs. 1,76,675

C. Utilities per month: Rs. 8,000

D. Other Contingent Expenses per Month: Rs. 1,75,000

Total Working Capital per month = A + B + C + D = 1,72,000 + 1,76,675 + 8,000 + 1,75,000 = Rs. 5,31,675.

Total Capital Investment

Fixed capital = Rs. 4,25,000

Working Capital (on 3 months basis) = Rs. 15,95,025

Total = Rs. 20,20,025.

Financial analysis of Rose Water Manufacturing Business

a. Cost of Production (Per Year): Rs. 66,24,603

b. Turnover (Per Annum): Rs. 72,00,000

c. Net Profit Per Annum:

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Profits in Rose Water Manufacturing Business — Profits (Pic credit: pixabay)

Net Profit = Turnover per Year – Cost of Production = 72,00,000 – 66,24,603 = Rs. 5,75,397

d. Net Profit Ratio = (Net Profit per year / Turnover per Year) X 100 = (575397 / 7200000) X 100 = 7%

e. Rate of Return = (Net Profit per year / Total Investment) X 100 = (575397 / 2020025) X 100 = 28.48%.

Break-Even Point (B.E.P.)

Interest on investment @ 10%: Rs. 2,02,003

40% of wages and salaries: Rs. 68,800

40% of other expenses (except rent): Rs. 70,000

Rent: Rs. 1,20,000

Total: Rs. 4,60,803

Break- Even Point (B.E.P.) = [Fixed Cost/ (Fixed cost + Profit)] X 100 = 460803/ (460803+575397) X 100 = 460803 / 1036200 X 100 = 44.47%.

Marketing strategies to promote your Rose Water product

You can promote your Rose Water through B2B and B2C websites:

B2B websites: The websites like –

Alibaba,
Indiamart,
Tradeindia,
ExportsIndia will take the bulk orders for your Rose Water.

B2C websites: To sell the products directly to the customer, you may also market in the well-established websites like–

Amazon,
Snapdeal,
Flipkart, etc.