Project report for sandalwood oil

Market Landscape & Feasibility of Sandalwood Oil

• You can supply sandalwood oil to a ₹5,000 crore global market for fragrances, skincare, and medicines, growing 5% yearly as companies demand more.
• You can sell organic sandalwood oil for ₹11,000-₹16,000 per kg, earning 20% extra, with natural product sales rising 10% in 2025.
• You can benefit from India’s 70% hold on sandalwood oil, exporting ₹1,200 crore annually to Europe and the USA, despite new farms elsewhere.
• You can use sustainable methods like drip irrigation, cutting water use by 30%, and ethical sourcing gains 15% more customer confidence.

• You can plant 400 sandalwood trees per acre, but India has just 5,000 hectares, so you grow host trees like neem to support them.
• You can secure permits from forest departments, as sandalwood is protected, avoiding ₹5 lakh penalties by sticking to legal rules.
• You can invest ₹18-28 lakh per acre for land (₹9 lakh), saplings (₹2 lakh), distillation unit (₹7 lakh), and labor (₹2 lakh yearly).
• You can master distillation and pest management, using steam units and sheds costing ₹6-9 lakh, needing 1-2 trained workers.
• You can prevent theft with guards and fences (₹45,000 yearly), plant quick crops since trees take 15-20 years, and follow laws to stay safe.

Entrepreneurial Benefits & Profitability of Sandalwood Oil

• You can sell sandalwood oil at ₹3 lakh per liter in a ₹5,000 crore world market for fragrances and skincare.
• You can plant sandalwood trees for 12-15 years to harvest 20 kg of heartwood per tree, valued at ₹2-3 lakh each.
• You can outshine fake oils since India and Indonesia dominate real sandalwood oil, keeping rivals few.
• You can tap Pradhan Mantri Kisan Sampada Yojana funds to pay 25-35% of your setup costs.
• You can create a green brand with natural sandalwood oil, boosting sales 10% as eco-products trend in 2025.

• You can invest ₹5-7 lakh per acre over 15 years for saplings (₹50,000), workers (₹3 lakh), and water (₹1.5 lakh) to earn ₹6 crore from 200 kg of oil at ₹3 lakh per liter.
• You can gain an 800-1000% return after 15 years, turning ₹7 lakh into ₹6 crore with 400 trees per acre.
• You can produce perfumes at ₹4,800 per 100 ml or lotions at ₹1,800 per 50 g to triple profits in high-end markets.
• You can ship oil to Europe and the USA at ₹3.6 lakh per liter, 20% above local rates, with India’s exports reaching ₹1,200 crore in 2025.

Best Project Report for Sandalwood Oil Business – Get Bank-Ready in Minutes!