§1What this business is

Leaves and terminal branches of selected eucalyptus species are packed tightly into the extractors (stills). Steam from a boiler at 40 psi passes through them; the oil-laden vapour is condensed and cooled, the oil is separated from water, inspected and packed. Distillation takes 3 to 18 hours depending on the material. Buyers are pharmaceutical, balm, cosmetic and cleaning-product makers and essential-oil traders.

Capacity: The yearly capacity line is blank in the profile; the unit is planned to distil 2 tonnes of eucalyptus leaves a day.

§2Is it right for you?

Who it is for

Someone near eucalyptus plantations who can tie up regular leaf supply with farmers or forest contractors.

Who it is not for

Someone without a steady leaf supply or a buyer for the oil.

Advantages

  • Eucalyptus is widely planted, so leaves are easy to get
  • Simple steam distillation with no chemicals
  • Oil is light to store and ships easily

Drawbacks

  • Oil yield and price depend on species and leaf quality
  • Needs a boiler, firewood and a lot of water
  • Prices follow the national and world essential-oil market

Skills you need

  • Running a boiler and still safely
  • Leaf buying and loading
  • Oil separation and quality testing
  • Selling to oil traders and manufacturers

Why difficulty 3/5: Simple process, but boiler safety, leaf supply and oil prices need care.

§3Market

Who buys

  • Pharmaceutical and balm makers
  • Cosmetic, soap and cleaning-product makers
  • Essential-oil traders and exporters

How it sells

  • Essential-oil traders and aroma markets
  • Direct supply to manufacturers

Good to know

  • Buyers usually ask for a test report on each lot.

§4Raw material & machinery

ItemQtyCost
Extractors / distillation still——
Condenser——
Cooler——
Separators——
Cooling water circulation pump——
Steam generator / boiler——
Diesel generating set——
Trailer and support structure——
Drier (110 KW, other utility)——

From: NSIC project profile — Essential Oil Extraction — private guide — confirm locally

  • Eucalyptus leaves2 tonnes a day
  • Diesel for power generation50 litres a day
  • Firewood500 kg a day

From: NSIC project profile — Essential Oil Extraction — private guide — confirm locally

Suppliers in Building Business Bazaar

Fragrance & Flavour Development Centre (FFDC), Kannauj · Kannauj →MSME Technology Centre, Imphal · Imphal →

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. Consent to establish and operate from the State Pollution Control Board (boiler, firewood)
  4. Registration and yearly inspection of the steam boiler under the boiler law
  5. A drug or AYUSH licence only if you sell the oil as a medicine under your own label

We can do this registration for you

§6Schemes & subsidies

PMEGP fits (₹42.66 lakh, under the ₹50 lakh manufacturing limit); CGTMSE for a loan without collateral; Stand-Up India for SC/ST and women founders.

§7Money

How the investment is worked out: The NSIC profile prints one figure for machinery and equipment plus 3 months' working capital (raw material, utilities and salary): ₹42.66 lakh. It gives no split between the two, and land and building are not included.

Working capital: Working capital for 3 months (raw material, utilities and salary) is inside the ₹42.66 lakh total; the profile prints no separate figure.

Year not printed on the NSIC profile (an older NSIC Training-cum-Incubation Centre sheet) — check current machinery and material prices.

How to prepare a loan file

§8Export potential

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

3301.29Essential oils other than those of citrus fruit — other

Export council / board: CHEMEXCIL

  • Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Leaf supply gaps
  • Boiler accidents
  • Oil price falls
  • Firewood and smoke rules

§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 eucalyptus oil distillation unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), 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 Eucalyptus Oil Distillation?

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

Get a DPR / loan file made

Sources

  1. NSIC project profile — Essential Oil Extraction

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