§1What this business is
Vetiver roots are washed, soaked for a day and boiled in a heating tank for 60–70 hours; the steam carries the oil to a condenser and a separator splits high-density and low-density oil. The oil goes into perfumes, incense, cosmetics and aromatherapy. Digging waste sells for briquettes and fodder.
Capacity: 1,200 kg of roots per acre, 6,000 kg from 5 acres; oil recovery 1% = 60 kg of oil a year (70% in year 1).
§2Is it right for you?
Who it is for
A farmer with spare land who can also run a small distillation unit.
Who it is not for
Someone who needs monthly income from day one.
Advantages
- Very high value per kg of oil
- Khus grows on poor and flood-prone land
- Small investment (₹7.50 L)
- Root waste sells as briquette fuel and fodder
Drawbacks
- Only one crop cycle a year — cash comes slowly
- Oil yield is just 1% of roots
- Price depends on a few perfume buyers
- Digging roots is costly (JCB)
Skills you need
- Vetiver cultivation
- Running a distillation unit
- Grading oil and finding buyers
- Managing seasonal labour
Why difficulty 3/5: Farming plus distillation, with income once a year.
§3Market
Who buys
- Perfume and attar makers
- Incense (agarbatti) makers
- Cosmetic and aromatherapy firms
How it sells
- Essential-oil traders
- Direct sale to perfume houses
Good to know
- The report expects the global vetiver oil market to grow, with Asia-Pacific gaining.
- Digging waste (about 2 tonnes per acre per round) sells at about ₹2 a kg.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Distillation tank plant for 1 tonne (heating tank, furnace, condenser, separator, steam pipe) | 1 | ₹4,00,000 + GST ₹72,000 = ₹4,72,000 |
| Khus digger machine (optional, instead of JCB digging) | 1 | ₹70,000 |
From: PMEGP sample project report — Vetiver Oil (prepared by Udyami/Samadhan)
- Vetiver roots from your own field or bought from farmerscrop cost ₹44,000 an acre including JCB digging ₹15,000
- Planting material₹22,000 an acre, first year only
- Firewood or cow-dung cakes for fuel25 quintals a batch, ₹10,000 a batch
- Plastic containersfor packing oil
From: PMEGP sample project report — Vetiver Oil (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam registration
- GST
- Trademark for your brand (optional)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP and MUDRA both fit a ₹7.50 L project; CGTMSE for collateral-free credit.
§7Money
How the investment is worked out: Plant & machinery ₹5.44 L + fixtures and other assets ₹0.56 L + working capital ₹1.50 L = ₹7.50 L; land leased. Finance: own ₹0.75 L, term loan ₹5.40 L, working-capital limit ₹1.35 L.
Working capital: Working capital ₹1.50 L — crop cost ₹44,000 an acre and distillation ₹11,000 a batch (2 batches an acre).
Year not printed on the report — check current machinery prices.
§8Export potential
Export council / board: Not verified yet
- No HS code or export body has been checked against an official list yet.
§9Risks — where people fail
- Oil price fall
- Low oil recovery
- Crop loss from bad weather
- Firewood cost and supply
§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 vetiver (khus) 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), 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 Vetiver (Khus) 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.