§1What this business is
Geranium shoots are boiled with water for 3–4 hours; the steam carries the oil to a condenser, and oil and water separate in a separator. The oil is filled in 10 ml to 500 ml bottles. It is used in aromatherapy, cosmetics and skin care.
Capacity: 2 kg of oil a day; 600 kg (636 litres, 63,600 bottles of 10 ml) a year at full capacity; 50% assumed in year 1.
§2Is it right for you?
Who it is for
Someone in a geranium-growing belt who can tie up farmers and buyers of essential oils.
Who it is not for
Someone without assured raw material or a buyer for the oil.
Advantages
- Simple steam-distillation equipment (₹3.50 L)
- High value per kg of oil
- Growing demand for natural essential oils
- Gives farmers a crop to sell nearby
Drawbacks
- Needs a steady supply of geranium shoots from growers
- Oil yield varies with crop and season
- Adulteration and quality testing issues
- Thin profit in the first years
Skills you need
- Running a distillation unit
- Judging oil quality
- Farmer tie-ups
- Selling to cosmetic and aroma buyers
Why difficulty 3/5: Simple process; raw material and buyers decide success.
§3Market
Who buys
- Aromatherapy and essential-oil brands
- Cosmetic and skin-care makers
- Perfume and fragrance traders
How it sells
- Direct sale to manufacturers
- Essential-oil traders
- Retail in small bottles, including online
Good to know
- The report links demand to awareness of natural ingredients and a growing pharmaceutical sector.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Heating vessel | 1 | — |
| Condenser | 1 | — |
| Steam pipe | 1 | — |
| Separator | 1 | — |
| Water pump | 1 | — |
| Cooling tower | 1 | — |
| Water tank | 1 | — |
| Filling machine | 1 | — |
| Plant & machinery total | 1 lot | ₹3,50,000 |
From: PMEGP sample project report — Geranium Oil (prepared by Udyami/Samadhan)
- Geranium shootsbought from farmers; ₹42.00 L a year at full capacity in the report
- Bottles and packing material10 ml to 500 ml bottles
From: PMEGP sample project report — Geranium Oil (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam registration
- GST registration
- State Pollution Control Board consent
- Boiler registration if a steam boiler is used
- Cosmetic or AYUSH licence if sold as a skin or health product
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- AIFCentralUnclear3% interest subvention, up to ₹2 crore
PMEGP fits; MUDRA and CGTMSE for credit; AIF may fit primary processing near farms.
§7Money
How the investment is worked out: Samadhan report: building/shed 1,500 sq ft ₹9.00 L, plant & machinery ₹3.50 L, furniture ₹0.83 L, working capital ₹4.22 L = ₹17.55 L. Land own or rented.
Working capital: Working capital ₹4.22 L (bank ₹3.80 L); 14 days' raw material and 10 days' finished stock.
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
- 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
- Crop failure cuts supply
- Oil price swings
- Quality rejection by buyers
- Fire risk with boiler and fuel
§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 geranium oil distillation unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), 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 Geranium Oil Distillation?
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.