In India, a Lemongrass Oil Manufacturing Business is high demanded Sector Because, lemongrass oil contains 75-90 percent citral, it has a distinct lemon-like odour. A minimum of 70% citral content is required for commercial purposes. The citral concentration and solubility in alcohol are the two most important quality control measures. This is a necessary ingredient in toiletries such as soaps and bath salts.
It’s also utilised in the production of ionenes and artificial lemon flavour. Ionenes are important in the development of perfumes, artificial flavours, and soaps, and are even utilised as a basic ingredient in the production of vitamin A. The oil is reddish-yellow to reddish-brown in colour and smells strongly of lemon. It’s also used to make pain relievers, mosquito repellant lotions, disinfectants, and other pharmaceutical products.
Here in this article, Learn how to start a small-scale lemongrass oil production business.
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Market Potential for Lemongrass Oil
Lemongrass oil’s potential isn’t just restricted to meeting domestic Indian needs; it’s also sparked a global demand. This is a key essential oil, and with the growing popularity of aromatic cosmetics, demand for this oil is rising as well. In addition, the Indian people are becoming more aware of the benefits of essential oils. Over the period 2019-2025, the global market for Lemongrass oil is estimated to reach US$ 232.2 million, with a CAGR of 8.4%.
This indicates that there is a larger likelihood of establishing a lemon oil manufacturing facility. In addition, India is the world’s largest producer of this oil. Western Europe and North America are two additional big importers. Because of the increased demand for this oil, the area under cultivation is expanding, and farmers are becoming more interested in growing lemongrass. Starting a lemongrass oil manufacturing firm is a financially profitable undertaking for an Indian businessman in this situation.
Investment for the Business
The amount of money needed to start making lemongrass oil is determined by the type of business you have. The cost varies depending on the size of the firm, however, the initial investment for this venture is between 20 and 25 lakhs. If you have the funds to start the business on your own, that is preferable. otherwise, you will have to seek funding from other capital firms or banks.
Area Required to start Lemongrass Oil Manufacturing Unit
The most crucial requirement is that the plant must be established near the lemongrass planting land. So that you can readily obtain the raw materials. A 1000 sq ft covered area is sufficient for a small-scale company. Moreover, You’ll need to build a godown to store the packaged oil as well as the raw supplies. Check the electrical supply, as well as the availability of water and transportation.
Permissions and license required for Business
This oil is commonly utilised as a raw material in industries. As a result, it’s a good idea to examine your state’s laws before starting a firm. A few licences and permissions that may be required have been included here. The most important step is to figure out what kind of business plan you have and register it as such.
first, Obtain a Trade License from the local government.
The online platform is where you can apply you want to utilise the oils to flavour food, you’ll need to get an FSSAI licence. Even the GST is now required for all businesses, so double-check that.
Raw Materials for Lemongrass Oil
Lemongrass is the primary raw ingredient. Grass plants also thrive in soils that aren’t ideal for richer output plants. Plants grown in sandy, rather dry soils produce more oil and oil with a higher citral content than plants grown in very rich soils. The oil-to-leaf ratio is equal to 0.348 percent. As a result, to make 1 kilogramme of essential lemongrass oil, you’ll need roughly 288 kg of lemongrass.
Machinery Required for Lemongrass Oil
The following machinery is required to run a lemongrass oil making business:
1. Evaporator vessel.
2. Florentine flask.
3. Steam boiler
4. Cooling tower
Lemongrass Oil Manufacturing Process.
For large-scale lemongrass oil manufacturing, steam distillation is the favoured method. To begin, you’ll need to generate steam in a boiler. The steam is then introduced into the tank containing the leaves and water.
The leaves should then be placed on a grid that is placed a certain distance above the level of the water that fills the vessel’s bottom. Steam flowing in a pipe coil submerged in the water vaporises the water indirectly.
In a separate water-cooled condenser, the water vapour and distilled oil from the evaporator vessel are recovered. Then decant the mixture pouring out of the condenser into a Florentine flask to separate it.
The lemongrass oil floats to the top of the mixture. You can easily split it here. However, because the distilled water still includes some soluble oil components, it is returned to the evaporator.
Marketing for the Lemongrass Oil
It is simple to enter this industry and sell your goods because there is currently a large demand for this oil. However, in order to grow your sales and future business, use market strategies to outsmart your competitors and begin advertising your product with the brand name so that people remember it. The use of a brand name boosts productivity.
Also, use social media to promote your goods, such as Facebook, Whatsapp, and Instagram, and try to sell it through online websites or applications like Flipkart or Amazon, which are in high demand. Local newspapers, periodicals, and electronic media channels can all be used to promote your business. Place billboards at various areas. Fix banners are used wherever they are needed to increase your customer base.