§1What this business is

Medicated oils (tailas) are made by cooking herbs in a base oil such as sesame oil until the herbal properties pass into the oil. The oil is filtered and filled into washed, dried bottles. Pain-relief, hair and massage oils sell through vaidyas, medical stores and Panchakarma centres.

Capacity: 95,500 bottles a year at ₹13.00 each (₹12.61 lakh) at full capacity.

§2Is it right for you?

Who it is for

An Ayurveda graduate (BAMS) or pharmacist, or someone who can employ one, with links to vaidyas and medical stores.

Who it is not for

Someone who wants to sell without a licence or make medical claims without classical formulations.

Advantages

  • Ayurveda has a large and growing customer base
  • Small investment and simple machines
  • Herbs are available from forest and farm produce traders
  • Pain-relief and massage oils sell in large volumes

Drawbacks

  • Needs an AYUSH drug licence and GMP before selling
  • Many established Ayurvedic brands compete
  • Herb quality and adulteration are hard to control
  • Base oil prices change often

Skills you need

  • Classical Ayurvedic formulations
  • Identifying and testing raw herbs
  • Oil cooking (taila paka) and filtering
  • Record keeping for drug licence and GMP

Why difficulty 3/5: Simple filling line, but the drug licence and GMP rules apply.

§3Market

Who buys

  • Ayurvedic doctors (vaidyas) and clinics
  • Medical and Ayurvedic stores
  • Hospitals, dispensaries and government AYUSH supply

How it sells

  • Distributors to medical stores
  • Contract manufacturing for other Ayurvedic brands
  • Online sale under your own brand

Good to know

  • The KVIC profile says Ayurvedic treatment, once mostly rural, has spread across the world and has large scope.

§4Raw material & machinery

ItemQtyCost
Volumetric filling machine1—
Bottle washing machine1—
Bottle drier1—
Filling machine and other equipment1 set—
Equipment total in the profile1 set₹2,00,000

From: KVIC Project Profile — Manufacture of Medicated Oil (PMEGP)

  • Base oil (such as sesame oil)raw material ₹6.40 lakh a year in the profile
  • Herbs and other ingredientsas per the classical formula
  • Bottles and labels₹25,000 a year in the profile

From: KVIC Project Profile — Manufacture of Medicated Oil (PMEGP)

§5Licences & registration

  1. AYUSH drug manufacturing licence from the State Licensing Authority (Drugs and Cosmetics Rules, 1945)
  2. Good Manufacturing Practices under Schedule T
  3. Udyam registration
  4. GST registration
  5. State Pollution Control Board consent (check your category)

We can do this registration for you

§6Schemes & subsidies

PMEGP fits (this is a KVIC forest-based industry profile); MUDRA and CGTMSE cover a loan of this size.

§7Money

How the investment is worked out: KVIC profile: building shed 1,000 sq ft ₹2.00 lakh + equipment ₹2.00 lakh + working capital ₹1.05 lakh = ₹5.05 lakh. Land own.

Working capital: Working capital ₹1.05 lakh (₹1,05,054 per cycle). Raw material ₹6.40 lakh and labels/packing ₹0.25 lakh a year.

Year not printed on the KVIC profile — check current machinery prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

3004.90Medicaments in measured doses or retail packs — other

Export council / board: Pharmexcil

  • HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Licence or GMP lapses stopping production
  • Batch failure in quality tests
  • Price competition from big brands
  • Herb price and supply swings

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working ayurvedic medicated oil (taila) making unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (AYUSH drug manufacturing licence from the State Licensing Authority (Drugs and Cosmetics Rules, 1945), Good Manufacturing Practices under Schedule T), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Ayurvedic Medicated Oil (Taila) Making?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. KVIC Project Profile — Manufacture of Medicated Oil (PMEGP)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.