Detailed Project Report on Rose & Lavender Cultivation and Oil Processing Damask Rose (Rosa Damascenamill)

ROSE & LAVENDER CULTIVATION AND OIL PROCESSING 

[EIRI/EDPR/7148] J.C. 2336XL

INTRODUCTION

Fragrances and Flavours (F&F) are significant constituents in food and cosmetics industry. They consist of varied ingredients including absolutes, oleoresins, isolates, attar, essential oils, aroma chemicals and special aroma ingredients. The developed countries have a mature flavor and fragrance market that forms an integral part of the home & personal care and food & beverages industries. Though India is at a nascent stage when it comes to penetration of flavor and fragrance finished products, the F&F ingredient manufacturing market in India is quite mature. However, increasing disposable income of the Indian masses and rural penetration of FMCG and F&B power houses, two consumption driven sectors, are providing the much needed boost to flavor. 

The global perfume market was valued around USD 39 billion in 2018, which is projected to touch about USD 48 billion by 2024, growing at a CAGR of 3.6%. The rapid shift in the lifestyle choices amongst the young generation has led to a steep increase in the demand for this industry. In addition to the changing lifestyle, increase in disposable income and rapid urbanization has created a high demand for the perfume Industry. Furthermore, several manufacturers offer high-quality products at affordable prices, in order to target the urban market, which has catalyzed the growth of the perfume industry across the globe. International players have taken several steps towards product packaging, by initiating fragrances in roller balls and distinct bottle sprays. 

There exits an array of categories in the perfume market, out of which, female fragrances is ahead of all the other categories internationally and accounts for majority of the market share. Under the distribution channel, the market has further been segmented into departmental stores, online stores and supermarkets, to name a few. At present, the specialty stores hold the largest share. One of the most important factor is that the capital investment that is required for setting up a perfume manufacturing plant is relatively low, for any given new entrant. Furthermore, other significant factors that spur the demand for this segment are the rapid growth in urbanization, the population as well as advertising, which is an essential component. 

E-Commerce, in particular, has rapidly expanded at the global level and still holds an immense growth potential, especially in developing regions. This is one of the most crucial tools that the cluster can utilize to expand the business in the international market. Global perfume & fragrance manufacturers have found opportunities in India accruing to an estimated hike in demand of perfume & fragrance products, especially cosmetics and toiletries. Globally, countries like Brazil, United States, France, Germany and Russia are the forefront players of the perfume industry. At present, Brazil holds the majority of the global market share.

The fragrance & flavor market in India is dominated by 4 global players that control more than 2/3rd market with remaining being occupied by around 1000 local Indian players. The growing demand in the Indian market and increasing acceptance of Indian F&F ingredients has further helped in making India a gateway to the South East Asian fragrance & flavor market. The key stakeholders that make up the flavor and fragrance value chain are; raw material suppliers, base ingredient manufacturers, blenders, and end consumer industries.

COST ESTIMATION

Plant Capacity            196.1666 Ltr./Day

Land & Building (35 Hectare)    Rs. 1.43 Cr

Plant & Machinery                    Rs. 79.95 Lac

Working Capital for 3 Months    Rs. 33.17 Lac

Total Capital Investment          Rs. 2.70 Cr

Rate of Return                          5%

Break Even Point                      88%

CONTENTS

INTRODUCTION

GLOBAL ESSENTIAL OILS MARKET

INTRODUCTION ABOUT CULTIVATION OF ROSE (ROSA DAMSCENA)

ORIGIN, DISTRIBUTION, AREA AND PRODUCTION

CHARACTERISTICS OF ROSA DAMASCENA MILL

PESTS AND DISEASES OF ROSA DAMASCENAMILL AND THEIR CONTROL

PROCESSING:

LAVENDER CULTIVATION PRACTICES IN INDIA

PLANT & MACHINERIES SUPPLIERS ADDRESS

PRINCIPLES OF PLANT LAYOUT

PLANT LOCATION FACTORS

EXPLANATION OF TERMS USED IN THE PROJECT REPORT

UTILITIES 

WASTE TREATMENT

PROCESS FLOW DIAGRAM

MACHINERY PHOTOGRAPH

ORGANIZATION CHART

DISTILATION PLANT LAYOUT

TURNKEY CONSULTANT

IMPLEMENTATION SCHEDULE

APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING

03. PLANT AND MACHINERY

04. OTHER FIXED ASSESTS

05. FIXED CAPITAL

06. RAW MATERIAL

07. SALARY AND WAGES

08. UTILITIES AND OVERHEADS

09. TOTAL WORKING CAPITAL

10. TOTAL CAPITAL INVESTMENT

11. COST OF PRODUCTION

12. TURN OVER/ANNUM

13. BREAK EVEN POINT

14. RESOURCES FOR FINANCE

15. INSTALMENT PAYABLE IN 5 YEARS

16. DEPRECIATION CHART FOR 5 YEARS

17. PROFIT ANALYSIS FOR 5 YEARS

18. PROJECTED BALANCE SHEET FOR (5 YEARS)