Ylang-Ylang Oil Project Report, Business Plan

Introduction to Ylang-Ylang Oil Project Report, Manufacturing Business Plan: Ylang-Ylang is famous yellow, a star-shaped flower that grows on the Cananga tree (Cananga odorata). The Ylang-Ylang flower helps to obtain many types of essential oil, through the steam distillation process. The oils differ in the power of their fragrance. Ylang-Ylang oil is the most vital essential oil extracted from the Ylang-Ylang flower. This oil is mainly used as a chief ingredient in perfumes, like Chanel Number Five.

The less potent essential oils are used to prepare products like cologne, food flavoring, lotion, and soap. The refined form of Ylang-Ylang is commonly called s Cananga oil.

A guide to Ylang-Ylang Oil Project Report, Manufacturing Business Plan

Ylang-Ylang Oil
Ylang-Ylang Oil

Uses of Ylang-Ylang Oil: Ylang-Ylang has showcased to show the below benefits:

  • It helps to boost the mood
  • It decreases depression
  • It alleviates anxiety
  • It helps to control blood pressure
  • It reduces heart rate instances
  • It activates oil production in the skin and on the scalp
  • Avoids flying insects and even helps in killing bug larvae
  • Some people use Ylang-Ylang even for good mood stimulation, although these advantages vary from person to person and are not proven.
  • Ylang-Ylang is also seen in traditional, herbal treatment for conditions like Stomach distress, rheumatism, malaria, headache, Gout, and pneumonia.

Health benefits of Ylang-Ylang Oil

Even studies have reported that Ylang-Ylang plays a role in anxiety and boosted self-confidence when it was applied topically to the skin or inhaled. Ylang-Ylang’s beneficial effect on mood is even reported in other studies and is also validated by anecdotal evidence.

Another study shows that inhaling Ylang-Ylang imparts a sedative effect, by considerably decreasing systolic and diastolic blood pressure rates along with heart rate in healthy people.

Ylang-Ylang includes linalool, a chemical that has antifungal, antibacterial, and anti-inflammatory characteristics. It has been reported to be active at lowering the popular fungal infection, Candida albicans.

In many several regions of the world, Ylang-Ylang flowers are crushed into a paste and used as an inhalant to cure asthma. If dried, Ylang-Ylang flowers can be used for the treatment of malaria symptoms in countries present in Asia.

Business plan of Ylang-Ylang Oil Manufacturing Business

To start with Ylang-Ylang Oil Manufacturing Business, you need to consider the below points-

  • Market demand for Ylang-Ylang Oil
  • Basis and presumptions of Ylang-Ylang Oil
  • List of approvals required for starting the Ylang-Ylang oil manufacturing business
  • Raw materials required
  • List of machinery and equipment for extracting Ylang-Ylang Oil
  • Manufacturing process of Ylang-Ylang Oil
  • Project economics of Ylang-Ylang Oil Manufacturing Business
  • Profitability in Ylang-Ylang Oil Manufacturing Business

Market demand for Ylang-Ylang Oil

The global Ylang-Ylang oil market is classified based on application, type, and geography. The usage is the evidence of the industries associated with medicines, herbal, and others such as therapeutics, and household. The countries bordering the Indian Ocean, for instance as India, Malaysia, the Philippines, Indonesia, and few parts of Australia uses Ylang-Ylang Oil extensively. Ylang-Ylang has a fruity, flowery, and aromatic fragrance.

Basis and presumptions of Ylang-Ylang Oil Manufacturing Business

  • Plant Operation: 8 hrs. /shift, 8 runs/day, 2 shifts/day; 25 days/month, 300 days/year.
  • Plant Capacity: 389 litres/month.
  • Cost of Land: 200 sq. m. at 250.00/Sq. m. = 50,000.00
  • 100 sq. m. at 1500.00/ s. m. = 150,000.00
  • Office Supplies: P1,000 monthly
  • Permits and Licenses: P500 monthly
  • Insurance: 2% of Insurable Assets.
  • Realty Tax: 2% of Land and Building expenses
  • Working Capital: 3 months working.
  • Computation of depreciation cost: Straight line process
  • Repair and maintenance: 25% of Depreciation Cost
  • Firewood cost: P0.15/kgs.
  • Amount of firewood required/run: 130 kg
  • Citronella leaves required/run: 250 kgs.
  • Diesel Consumption: 70 litres/month
  • Average No. of trips/month: 8 trips/o.
  • Distance traveled: 60 km/trip
  • Contingency: 5% of total fixed assets without land
  • Sales Tax: No sales tax as the company will get registered with the BOI.
  • Collection: 30 days after-sale

List of approvals and permits required to start Ylang-Ylang Oil Manufacturing Business

The list of licenses, permissions, and registrations required to start Ylang-Ylang Oil Manufacturing Business in India is given below –

  • Register your business firm
  • MSME registration
  • GST registration
  • ROC
  • Get the PAN Card
  • Registration of firm
  • Shop Act License
  • FSSAI License
  • IEC Code
  • Export License
  • Fire and Safety
  • ESI
  • PF
  • No Objection Certificate from pollution board
  • Trade license from local municipal authority

Raw materials required for starting Ylang-Ylang Oil Manufacturing Business

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

Ylang-Ylang Flowers
Ylang-Ylang Flowers (Pic credit: pixabay)

flowers of Ylang-Ylang are the major raw materials used for extracting the oil.

List of machinery and equipment required to start Ylang-Ylang Oil Manufacturing Business

The machinery required for the extraction of Ylang-Ylang oil is:

  • Distillation kettle
  • Insulation layer
  • Material basket
  • Oil and water separator
  • Condensing tower
  • Electrical steam boiler
  • Extracting tank
  • Plate distillation system
  • Vacuum system and
  • Digital temperature system.

The manufacturing process of Ylang-Ylang Oil

Step 1:  Weigh the flowers.

Step 2: Keep water in the boiler that must be 12.70 cm level in height from the bottom. With rubber, tubing joins the inlet of the condenser to the water faucet.

Step 3: Keep the flowers on the screen trays into the boiler.

Step 4: Heat the boiler. When the water boils the steam rises between the screen trays thus introducing heat and dig out the essential oil. Open the faucet and place the water running throughout the operation by opening the outlet at the other end of the condenser.

Step 5: From the boiler, the steam and essential oil will pass through the metal tubing and be aggregated in the condenser. The running water will condense the steam and essential oil will move into the stainless steel tubing completing the condensation.

Step 6: Since oil has low density when compared to water it will float at the upper surface in the collecting tube while water will settle at the bottom.

Step 7: Collect the oil using a flask from a small outlet beside the collecting tube.

Step 8: Oil can be made free of moisture by drying with anhydrous sodium sulfate.

Step 9: Place in bottles seal properly and store in cool dry condition.

Ylang-Ylang Oil Project Report/economics of Ylang-Ylang Oil Manufacturing Business in India

A. Fixed Capital

i) Land 20000 sq. ft. Value Rs. 1,50,000

  • Land Development Rs. 25,000
  • Sub Total Rs. 1,75,000

 Built-up Area and other Civil Works

  • Production building: Rs. 5,40,000
  • Store space: Rs. 1,35,000
  • Shed construction: Rs. 2,25,000
  • Disposal pits: Rs. 10,000
  • Water storage tank: Rs. 30,000
  • Boundary wall etc.: Rs. 35,000

Sub total: Rs. 9,75,000.

Total costs for land and building construction: Rs. 11,50,000.

ii) Machinery and Equipments: Rs. 5,83,600

(iii) Preliminary and Pre-operative Expenses: Rs. 30,000

(iv) Other Fixed Expenses: Rs. 1,50,000

Total Fixed Capital (i + ii + iii + iv): Rs. 19,13,600

B. Working Capital (per month)

(i) Personnel

  • Manager: Rs. 4,000
  • Supervisor: Rs. 2,000
  • Operator: Rs. 1,800
  • Fitter: Rs. 1,600
  • Accountant-cum-clerk: Rs. 1,600
  • Skilled worker (Stockman): Rs. 1,300
  • Unskilled workers: Rs. 6,000
  • Watchman-cum-peon: Rs. 1,000
  • Perquisites @ 15%: Rs. 2,895

Total: Rs. 22,195

Say: Rs. 22,000.

ii) Raw materials and packaging materials: Rs. 1,06,000

iii) Utilities

  • Power 3000 KWH units: Rs. 2.5: Rs. 7,500
  • Water 400 K.Lt.: Rs. 3: Rs. 1,200
  • Fuel like Diesel K/oil etc. LS: Rs. 1,850

Total: Rs. 10,550.

iv) Other Contingent Expenses

  • Postage and Stationery: Rs. 1,000
  • Telephone: Rs. 500
  • Stores: Rs. 1,000
  • Repairs and maintenance: Rs. 1,000
  • Transport charges: Rs. 5,000
  • Advertisement and publicity: Rs. 5,000
  • Insurance: Rs. 650
  • Taxes: Rs. 500
  • Sales expenses: Rs. 2,000
  • Misc. expenditure: Rs. 8,000

Total: Rs. 24650.

v) Total Recurring Expenditure (i + ii + iii + iv): Rs. 1,63,200

vi) Working Capital

Recurring expenditure (for one month): Rs. 1,63,200

C. Total Capital Investment

Fixed Capital: Rs. 19,13,600

Working Capital (For 1 month): Rs. 1,63,200

Total: Rs. 20,76,800.

Cost of Production (per year);

  • Total recurring expenditure: Rs. 19,58,400
  • Depreciation on building and other Civil Construction @ 5%: Rs. 48,750
  • Depreciation on machinery and equipments @ 10%: Rs. 50,000
  • Depreciation on hand tools and miscellaneous equipments @ 25%: Rs. 7,000
  • Depreciation on office equipments and furniture @ 20%: Rs. 4,000
  • Interest on Total capital @ 15%: Rs. 3,12,000

Total: Rs. 23,80,150

Say: Rs. 23,80,000.

Sales price per year: Rs. 28,72,500.

Profitability in Ylang-Ylang Oil Manufacturing Business

Net Profit (per year) (before Income Tax): Rs. 28,72,500 (Sales price per year) – Rs. 23,80,000 (Cost of production per year) Rs. 4,92,500.

Net Profit Ratio: 17%

Rate of Return: 24%

Break-Even Point

Fixed Cost

  • Depreciation on machinery and equipment: Rs. 50,000
  • Depreciation on hand tools: Rs. 7,000
  • Depreciation on office equipment and furniture: Rs. 4,000
  • Depreciation on building and other civil works: Rs. 48,750
  • Interest on Total investment: Rs. 3,12,000
  • Insurance: Rs. 7,800
  • 40% of salary and wages: Rs. 1,05,600
  • 40% of other contingent expenses: Rs. 1,15,200

Total: Rs. 6,50,350.

Net Profit (per year): Rs. 4,92,500.

B.E.P. = Fixed cost × 100 / Fixed cost + profit = 6,50,350 × 100 / 11,42,850 = 57%.


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