Samadhan Projects

Citronella Oil

₹25 L(₹25,00,000) · ₹25–50LUp to 35% subsidy

Process plant · QC · Inventory-heavy

The pitch

Produce high‑purity citronella oil by steam distillation of locally sourced citronella leaves, yielding 10‑15 L per 200 kg batch.

Wholesale to fragrance manufacturers, aromatherapy product makers, cosmetic firms, and direct sales via e‑commerce platforms. The plant operates 5 days a week, 3 shifts, with a 200 kg leaf input per shift, producing 10–15 L of oil. Inventory of leaves and finished oil is maintained to meet demand cycles.

₹25,00,000 sample cost covers procurement of 200 kg of leaves per batch, a 5 t steam distillation unit, storage tanks, packaging line, quality‑control lab, and initial working capital.

Watch-outs

Idea-specific discussion points — not automatic disqualification

Raw material price volatility
Leaf prices can fluctuate seasonally; lock in long‑term supply contracts to stabilize costs.
Distillation efficiency
Low steam‑to‑leaf ratio or equipment wear can reduce yield; regular maintenance and process optimization are essential.
Market price fluctuations
Oil prices are sensitive to global fragrance demand; diversify customer base to mitigate risk.
Compliance delays
FSSAI, GST, and environmental clearances may take months; start applications early to avoid production stoppage.

Education gate

Other funding routes worth checking

Beyond PMEGP — schemes that may complement this project's sector or cost band.

MSME ChampionsMarket Access

Helps MSMEs upgrade quality, technology, and design, and become more competitive, through ZED certification, Lean manufacturing, and innovation/IPR support.

SRI FundEquity

Equity/quasi-equity growth capital for viable MSMEs, deployed through daughter funds managed by NSIC Venture Capital Fund Ltd.

National SC-ST HubMarket Access

Support for SC/ST entrepreneurs — capital subsidy, capacity building, and public-procurement access.

For SC/ST entrepreneurs

Browse all schemes

Show the proof

Sourcing — coming soon

Scheme mechanics

PMEGP (MSE) – collateral‑free loan up to 80% of project cost, interest 8–10%
MSEI – credit guarantee scheme for micro‑enterprises

VIII pass required for manufacturing projects > ₹10 L; verify current PMEGP guidelines for eligibility.

Plan the money

Subsidy split, EMI, and an indicative breakeven — adjust the assumptions to your own numbers.

Financial planner

Subsidy split, EMI, and an indicative breakeven — for discussion only (indicative-2026-08-01).

Beneficiary categoryAreaFull-capacity annual revenue (₹)Estimated

Utilization Y1: 50%Margin on sales: 10%Bank interest rate: 10%Loan tenure: 7 yrs

Margin money (25%)

₹6,25,000

Own contribution (10%)

₹2,50,000

Bank credit (illustrative)

₹16,25,000

Estimated EMI

₹26,977/mo

Breakeven

Not reached within 7 yrs

Indicative DSCR

0.77

Figures are illustrative for discussion, not a sanction estimate.
Actual margin money and contribution depend on current PMEGP guidelines and implementing agency.
Land cost is generally excluded from project cost under the scheme.
Full-capacity revenue is estimated at 2× project cost (₹25 L) — adjust it to your own numbers.

Indicative only — actual bank DSCR calculations add back depreciation; treat this as a sense-check, not a bank figure. Verify with your CA/bank before applying.

Next 90 days

Secure long‑term leaf supply contracts and negotiate pricing.
Set up and commission the distillation unit, calibrate for optimal yield.
Obtain FSSAI, GST, and environmental clearances before first batch.
Run pilot production, perform quality testing, and refine SOPs.
Launch marketing to initial buyers and establish distribution agreements.

Disclaimer: Costs and sample reports are published by PMEGP / MSME authorities. FoundersOffice Idea Browser is an independent discovery and briefing tool — not affiliated with the Government of India, MSME, KVIC, DIC, or any bank. Nothing here is a sanction, loan offer, or guarantee of subsidy. Heuristics and future scores are advisory; verify on the official portal before applying.

Sample profile sourced from the PMEGP scheme (Ministry of MSME) · verify against the official PDF before filing.

Engage Founder's Office & Co

Similar process / compliance profile

The project taps into the rising preference for natural fragrance oils, supports local agriculture by creating a market for citronella leaves, and contributes to sustainable manufacturing practices.

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₹68.9 L₹68,91,000

Oil blending process · Quality control testing · Bulk storage · Packaging operatHeavy capitalRural & urban

Higher ticketEducation gate

Open brief

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Samadhan Projects