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Geranium Oil Project Report

1) The document provides details about a proposed geranium oil extraction project, including information about the promoter such as their name, address, education, and contact information. 2) It outlines the total projected capital cost of Rs. 2089000 for the project and describes the means of financing through a term loan covering 70% of costs and own contribution of 30%. 3) Financial projections for the fifth year of the project include an estimated annual turnover of Rs. 8.20 lakhs, profit after tax of Rs. 3.65 lakhs, ROI of 36.63%, break-even point of 34%, and debt service coverage ratio of 2.34.

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Mahendra Kurhade
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0% found this document useful (0 votes)
253 views14 pages

Geranium Oil Project Report

1) The document provides details about a proposed geranium oil extraction project, including information about the promoter such as their name, address, education, and contact information. 2) It outlines the total projected capital cost of Rs. 2089000 for the project and describes the means of financing through a term loan covering 70% of costs and own contribution of 30%. 3) Financial projections for the fifth year of the project include an estimated annual turnover of Rs. 8.20 lakhs, profit after tax of Rs. 3.65 lakhs, ROI of 36.63%, break-even point of 34%, and debt service coverage ratio of 2.34.

Uploaded by

Mahendra Kurhade
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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CHAPTER — 1

HIGHLIGHTS OF THE REPORT

A. GENERAL

1. Name and Address of : Avinash Geranium Farming


project site A/P-Nimgaon ketaki Tal-Indapur
Dist-Pune
MOB-9172734747

2. Name and Address of . Avinash Ratan Jadhav


Promoter A/P-Nimgaon ketaki Tal-Indapur
Dist-Pune
MOB-9172734747

3. Education : BSc.Agri

4. Constitution : Proprietary

5. Product : Geranium Oil

NEEM EXTRACTION UNIT 1


B. PROJECT, CAPITAL COST AND MEANS OF FINANCE:

1. COST OF PROJECT

Sr. Particulars Amount


No. (Rs.)
1.1 Land and Site Development 00.00
1.2 Buildings Development 350000.00
1.3 Equipments 1031000.00
1.4 Contingencies 70000.00
1.5 Misc. Fixed Assets 17000.00
1.6 Prelim. & Preoperative Expenses 11000.00
1.7 Margin Money on W/C 610000.00
Total 2089000.00

2. MEANS OF FINANCE

Sr. Particulars Amount


No. (Rs.)
2.1 Term Loan (70%) 1462000.00
2.2 Own contribution (30%) 627000.00

Total 2089000.00

NEEM EXTRACTION UNIT 2


C. PROJECT PROFILE (FINANCIAL)

# Particulars Unit FIFTH


YEAR

1. Estimated W/C : Rs.in Lakhs 3.42


Requirements

2. Estimated Annual : Rs.in Lakhs 8.20


Turnover

3. Profit After Tax (PAT) : Rs.in Lakhs 3.65

4. ROI - EBIT to Capital : % 36.63


Employed

5. B.E.P. (% of Installed : % 34.00


Capacity)

6. Employment Potential : Nos. 3


( Semi Skilled)

7. Debt Service : Average 2.34


Coverage Ratio
(DSCR)

9. Payback Period : Years 5

NEEM EXTRACTION UNIT 3


CHAPTER — 2

INTRODUCTION :-

Essential oils currently have a huge demand in the market. The requirement
is growing day by day as customers tend to use them frequently for their basic
needs. This developed an opportunity for the businessmen to initiate their
business for products that have high demand in the market. The geranium
essential oil is obtained using the flowers and leaves of the Pelargonium
graveolens plant. This oil has many health advantages. The geranium flowers
are rich and perfumed. The rose-like aroma is majorly used in perfumes and
blends along with various other oils. Geranium oil is used by a large
population as it has an essential ingredient that is added to perfumes,
household items, cosmetics, etc. Now, let us get into the details of the
economics and the Geranium oil project report. Economics and Geranium Oil
Project

Economic Importance of geranium oil Production:-

The market potential for Geranium Oil Manufacturing Business Aromatherapy is


seen to be an efficient medication for several conditions. People with skin break-out
issues usually apply essential oils. The Burn scars can be healed with aromatherapy
oils. Furthermore, injuries due to burns get healed as well. Aromatherapy is widely
chosen compared to pharmaceutical medications as they have more advantages and
low or no side effects. The customer inclination toward preventive medical treatment,
the improved lifestyles, are important aspects that have the driving impact on the
global geranium oil market. Likewise, the growing examples of depression and
anxiety in people have also augmented the use of essential oils in aromatherapy
sessions. Broad research is actively performed to study the benefits of essential oils
leading to an increased demand for the global geranium oil market.

Market:

Marketing geranium is very essential for earning profit. Once the market is set,
the need or requirement for the product will be there in health stores and grocery
stores which are the primary dealers for these items. One can also market
geranium using other modes, like publishing in local classified advertisements,
designing a company website and promoting, or approaching the local markets.
The brand can be sustained mainly by the quality of the oil. Consumers start from
their end if the oil proves to be of superior quality and serves the purpose. Social
media is no doubt a good source to advertise the oil on several websites. The sales
will be enhanced if the marketing policies are efficient. As this oil is even used for
cosmetics it is essential to maintain it properly. Any bad review may be
threatening and declining sales.

NEEM EXTRACTION UNIT 4


Uses of Geranium:-

The geranium is chiefly used in massages. It gives grounding and calming impact for the emotions and also
the skin will get healthy. For best results, the geranium essential oil is mixed with lavender or coconut oil.

• The hair can be improved with the supplements that are provided by geranium oil. Adding a few drops of
this oil along with shampoo and conditioner can gain visible results. It can be used every day so that the
aroma of geranium oil will be there all day long.

• The daily skincare routine could be improved with this oil when used in a small quantity. For healthy- and
good- looking skin as well it has revealed perfect results. One can add geranium oil to the skin as a spot
treatment by adding it to the face along with a cleanser and wash your face twice a day. Many consider this
as the substitute for any anti-aging cream lotion.

• Before beginning, this business one should draft a proper business plan that comprises finance and
marketing policies.

• Perform proper market research. Get an idea about how the business is expanding in the local market and
the requirement for those products.

• To arrange this business the amount needed that could be availed by bank loans or may try to approach
various other financial establishments.

• Then, obtain necessary licenses and approvals based on the concerning state laws.

• Next set up an oil extraction manufacturing unit

• Before establishing a business, perform detailed research of the expense and prepare a proper estimate of
the entire cost. The analysis should have the day- wise activities as well. Later, select the name of the brand
or your firm which you are planning to start. Verify the geographical area and check if there is any demand
for tht tretailers like

NEEM EXTRACTION UNIT 5


SWOT ANALYSIS:

STRENGTHS:
i. Easily available of raw material.
ii. Easy associable.
iii. More technical guidance.
iv. Direct field service available.
v. Fix rate of raw material

WEAKNESS:
1. Farmers have no knowledge about geranium farming and
it's importance.
2. Lack of poor knowledge about this crop.
OPPORTUNITY:

1. Market can be expanded all over.


2. Can create monopoly in market.
3. Give information about importance of aromatic farming and it's importance to
farmers.
4. Taking follow-up trials on farmers field.

THREATS:

1. Natural calamities — draughts etc.


2. Somewhat competions is their in the market.

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