§1What this business is

A small blending unit: raw materials such as rose-flower extract, carrier oil and DM water are mixed, coloured and scented, then filled into bottles and packed. The machines are a blender, a packing machine, testing equipment and an extraction unit. Selling depends on brand, fragrance and packaging.

Capacity: Machine capacity 50 litres a day (12,000 litres a year); year 1 production 6,316 litres at 50%, sold at ₹700 a bottle.

§2Is it right for you?

Who it is for

Someone with a good sense of fragrance and a plan to sell under their own brand, online or through shops.

Who it is not for

Someone who wants to sell on price alone — perfume sells on brand.

Advantages

  • Small space and a 2 kW connection are enough
  • Basic machines — blending, filling and packing
  • An own brand can earn a better margin
  • Short set-up time: 2–3 months in the report

Drawbacks

  • Crowded market with big brands
  • Sales depend on branding and packaging
  • Hard to keep the fragrance the same in every batch
  • The report's own totals disagree (₹7.63 L vs ₹10.63 L)

Skills you need

  • Fragrance blending
  • Packaging and brand design
  • Online and shop selling
  • Batch quality control

Why difficulty 3/5: Easy to make, hard to sell — success depends on building a brand.

§3Market

Who buys

  • Individual customers
  • Gift and cosmetic shops
  • Online shoppers

How it sells

  • Cosmetic and general stores
  • Online marketplaces

Good to know

  • The report quotes industry estimates of about ₹2,000 crore for the Indian perfume industry and about ₹148 crore for online perfume sales (old estimates, as printed).

§4Raw material & machinery

ItemQtyCost
Blending machine——
Packaging machine (automatic or normal)——
Chemical testing equipment——
Flavour extraction unit——
Machines (total, before GST, as stated in the text)—₹3,50,000

From: PMEGP sample project report — Perfume (prepared by Udyami/Samadhan)

  • Rose-flower extractaverage raw material cost ₹300 a litre (report)
  • Carrier oilpart of the ₹300-a-litre raw material cost
  • DM (demineralised) waterpart of the ₹300-a-litre raw material cost
  • Bottles and packing₹25 a bottle in year 1, rising ₹1 a year

From: PMEGP sample project report — Perfume (prepared by Udyami/Samadhan)

Suppliers in Building Business Bazaar

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

In our raw material database

Ethanol (ethyl alcohol) →Essential oils and perfumery bases →

§5Licences & registration

  1. Udyam
  2. GST
  3. Cosmetics manufacturing licence from the State drugs controller (perfume is a cosmetic)
  4. Fire/pollution registration as required (report)
  5. Trademark for the brand name (report)

We can do this registration for you

§6Schemes & subsidies

PMEGP (report is a PMEGP sample); MUDRA up to ₹20 L; CGTMSE for collateral-free credit.

§7Money

How the investment is worked out: Samadhan report: building & civil work ₹2.50 L, plant & machinery ₹4.13 L, furniture ₹1.00 L = ₹7.63 L (the "cost of project" on its summary page). With working capital of ₹3.00 L its cost table totals ₹10.63 L.

Working capital: ₹3.00 L, of which bank limit ₹2.70 L.

Year not printed on the report — 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

3303.00Perfumes and toilet waters

Export council / board: CHEMEXCIL

  • 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

  • Weak brand recall
  • Copied products
  • Rise in essential-oil prices
  • Unsold stock

§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 perfume manufacturing 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, GST), 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 Perfume Manufacturing?

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

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Perfume (prepared by Udyami/Samadhan)

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