§1What this business is
Freshly harvested basil leaves are sorted, rinsed, dried in a dehydrator, coarsely crumbled and packed. Dried basil is used as a culinary herb and in herbal and essential-oil products.
Capacity: 600 kg a day on a 10-hour shift; the report plans 30% use in year 1.
§2Is it right for you?
Who it is for
A grower or farmer group in a basil/herb belt with links to spice or herbal brands.
Who it is not for
Someone without a steady leaf supply.
Advantages
- Can be linked to local basil growers or your own farm
- Dried herb keeps for months
- Demand from food, herbal and spice brands
- Simple drying and packing line
Drawbacks
- Leaf supply is seasonal
- Colour and aroma loss if drying is wrong
- Many workers for the output
- Thin net margin (about 5–7%)
Skills you need
- Herb drying and moisture control
- Food hygiene and FSSAI rules
- Contract farming with growers
- Selling to spice and herbal companies
Why difficulty 3/5: Processing is simple; securing leaves and quality buyers takes effort.
§3Market
Who buys
- Spice and herb brands
- Food processors and restaurants
- Herbal and essential-oil makers
How it sells
- Bulk supply to brands
- Wholesale spice traders
- Retail packs online
Good to know
- The report expects demand from essential-oil makers in Europe and North America.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Vegetable washing machine | 1 | ₹2.25 lakh |
| Dehydrator | 1 | ₹4.00 lakh |
| Coarse grinding machine | 1 | ₹1.75 lakh |
| Packaging machine | 1 | ₹4.50 lakh |
| Material handling and other equipment | — | ₹1.50 lakh |
From: PMEGP sample project report — Basil Processing (prepared by Udyami/Samadhan)
- Freshly harvested basil leavesthe only raw material named in the report
From: PMEGP sample project report — Basil Processing (prepared by Udyami/Samadhan)
§5Licences & registration
- FSSAI licence
- Udyam
- GST
- Spices Board registration (if exporting)
§6Schemes & subsidies
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMFME fits herb and spice processing; the report is a PMEGP sample; MUDRA and CGTMSE can cover the loan.
§7Money
How the investment is worked out: Samadhan sample report: machinery ₹14.00 L, furniture ₹1.00 L, working capital ₹9.18 L = ₹24.18 L. Land own or rented.
Working capital: Working capital ₹9.18 L, of which a bank loan of ₹8.26 L; 15 days of stock, 14 days' credit to buyers.
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Spices Board India
- Some dried culinary herbs are classed under heading 0910 instead; confirm the code in ITC-HS for your product.
§9Risks — where people fail
- Crop failure or price rise of leaves
- Microbial or moisture rejection
- Buyer concentration
- Storage pests
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working dried basil leaves processing unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (FSSAI licence, Udyam), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
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 Dried Basil Leaves Processing Unit?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.