§1What this business is
Ingredients such as jasmine compound and other aroma chemicals are mixed in a tank with a mechanical stirrer and packed. The output is a concentrated fragrance blend, not a retail perfume. Almost all the money goes into raw materials, not machines.
Capacity: 10,000 kg a year at ₹1,000 a kg (₹100 L value at full capacity).
§2Is it right for you?
Who it is for
A chemist or someone from the fragrance trade who already knows formulas and buyers.
Who it is not for
A beginner with no fragrance or chemistry background.
Advantages
- Very low machinery cost (₹1.50 L)
- Simple process: mix in a stirred tank, then pack
- Factories buy in bulk and reorder
- KVIC notes export potential
Drawbacks
- Working capital is over 90% of the cost
- The formula is the real asset — hard to build
- Margin depends on raw-material prices
- Buyers test every batch
Skills you need
- Fragrance formulation
- Safe chemical handling
- Relations with agarbatti, soap and cosmetic makers
- Batch consistency
Why difficulty 3/5: Cheap machinery, but needs formulation skill and a large working capital.
§3Market
Who buys
- Agarbatti (incense stick) makers
- Soap and detergent makers
- Cosmetic and toiletry makers
How it sells
- Direct sale to factories
- Fragrance traders
Good to know
- KVIC says demand grows with living standards and there is export potential as well as local use.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Mixer with mechanical stirrer | — | — |
| Weighing scale, platform type | — | — |
| Sealing and filling machine | — | — |
| Miscellaneous apparatus | — | — |
| Equipment (total) | — | ₹1,50,000 |
From: KVIC Project Profile — Perfumery Compound (PMEGP)
- Jasmine compound, cassis and other aroma chemicals₹89.52 lakh a year at full capacity (KVIC)
- Labels and packing material₹1.00 lakh a year
From: KVIC Project Profile — Perfumery Compound (PMEGP)
In our raw material database
Ethanol (ethyl alcohol) →Essential oils and perfumery bases →
§5Licences & registration
- Udyam
- GST
- State Pollution Control Board consent
- Fire safety NOC (flammable materials)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP (KVIC profile); MUDRA up to ₹20 L covers the ₹18.17 L cost; CGTMSE for collateral-free credit.
§7Money
How the investment is worked out: KVIC profile: equipment ₹1.50 L (mixer with stirrer, platform scale, sealing and filling machine, apparatus) + working capital ₹16.67 L = ₹18.17 L. Land own, work shed rented.
Working capital: ₹16.67 L — over 90% of the cost, because raw materials cost ₹89.52 L a year at full capacity.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
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
- Raw-material price swings
- Formula copied
- Long credit to buyers
- Storage of flammable chemicals
§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 perfumery compound blending unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST), 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 Perfumery Compound Blending?
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.