You must have used Aloe Vera Gel for skin problems or must have been advised from your parents or elders to use aloe vera gel for any skin issues. It has numerous health benefits and versatile applications in the food, cosmetic, and pharmaceutical industries.
As the demand for natural and herbal products rises, Aloe Vera Gel manufacturing presents a promising business opportunity in India. This article outlines everything you need to know to start an Aloe Vera Gel business, from licenses required to potential earnings.
Licenses Required for Manufacturing
Before you think to start an Aloe Vera Gel manufacturing business, you should know what are the license requires to obtain several licenses and permits:
- Company Registration: Register your business entity (Proprietorship, Partnership, LLP, or Pvt Ltd).
- FSSAI License: Required for manufacturing food-grade Aloe Vera Gel.
- GST Registration: Mandatory for tax purposes.
- MSME Registration: For availing benefits under Micro, Small, and Medium Enterprises.
- BIS Certification: If applicable, for ensuring product quality standards.
- Drug License: If producing pharmaceutical grade Aloe Vera Gel.
Step by Step Process to Operate
- Research and Planning: Conduct market research and prepare a business plan.
- Land and Building: Acquire suitable land and build infrastructure.
- Procure Equipment: Purchase necessary machinery and set up the manufacturing unit.
- Raw Material Sourcing: Secure a steady supply of fresh Aloe Vera leaves.
- Production Process: Follow a standardized process to produce Aloe Vera Gel.
Labour Requirement
Depending on the scale of operations, you will need:
- Skilled workers for operating machinery.
- Quality control analysts.
- Packaging staff.
- Administrative and managerial staff.
List of Equipment
- Aloe Vera Washing Unit: Tanks filled with cold and hot water for thorough washing.
- Ultrasound Sterilizer: Removes soil or dust particles by creating water agitation.
- Aloe Vera Leaf Pulp Removing Machine: Removes the outer pulp without damaging the inner gel.
- Juicer: High-speed machine that extracts juice from the gel.
- Mixing Tank: Used for storing juice and adding preservatives while heating.
- Homogenizer: Reduces viscosity and makes the juice uniform with a stirrer.
- Filter: Primary and secondary filtration to remove impurities.
- Paste Filling Machine: Fills and seals tubes with gel.
- Storage Tanks: Stores crude and filtered juice.
- Pump: Transfers juice between tanks.
- Conveyor: Moves materials between workstations.
Manufacturing Process
- Procurement and Timing: Freshly harvested Aloe Vera leaves are procured from local farmers. Rajasthan, followed by Andhra Pradesh, Gujarat, is the largest producer of aloe vera plants. Timing is crucial as leaves lose biological activity within six hours of harvest if stored at room temperature.
- Washing: A four-stage washing process:
- Stage 1: Soak leaves in steel tanks with water for 90 minutes, removing dirt with a brush.
- Stage 2: Clean leaves in UV-filtered, ozone-treated mineral water with 0.1% calcium hypochlorite for disinfection.
- Stage 3: Cut leaves into manageable parts and clean in agitated water.
- Stage 4: Clean leaves in hot water at 50°C for 30 minutes to remove aloin.
- Leaf Preparation: Cut sides of leaves manually and remove the upper and lower layers using an Aloe Vera leaf extractor to obtain fresh gel.
- Juicing: Grind the fresh gel in a juicer to produce juice, then transfer to storage tanks.
- Heating and Enzyme Addition: Heat the juice to 50-70°C and add pectolytic enzyme (0.06% w/v) and preservatives. Heat for 20-25 minutes.
- Storage and Filtration: Store the juice for 12 hours to reduce viscosity, then filter to remove impurities.
- Homogenization: Transfer juice to a homogenizer, add Caropol (2% w/w) and Aristoflex (1% w/w), and stir for 45-60 minutes until a fine gel emulsion forms.
- Bottling: Wash and dry bottles, fill them with gel using a filling machine, and pack for dispatch.
Investment or Project Cost Requirements
Starting an Aloe Vera Gel manufacturing unit involves significant investment:
- Land and Building: ₹50-60 lakhs
- Machinery and Equipment: ₹60-70 lakhs
- Working Capital: ₹30-40 lakhs
- Miscellaneous Costs: ₹24-34 lakhs
- Total Estimated Investment: ₹164.22 lakhs
This is the estimate only, it can vary when your start business. Investment depend on raw material cost, machinery costs, premises from you operate.
The Sales Strategy
- Market Research: Identify target markets such as cosmetics, pharmaceuticals, and food industries.
- Branding: Develop a strong brand identity and product line.
- Distribution Channels: Partner with wholesalers, retailers, and online marketplaces.
- Marketing Campaigns: Utilize digital marketing, social media, and traditional advertising to promote your products.
- Networking: Attend trade shows and industry events to build connections.
How Much You Can Earn
Earnings can vary based on production capacity and market demand. On average:
- Revenue: ₹20-30 lakhs per month
- Profit Margin: 20-25%
- Net Profit: ₹4-7.5 lakhs per month
Case Study: Patanjali Ayurveda
Patanjali Ayurved, founded by Baba Ramdev and Acharya Balkrishna, is a prime example of a successful Aloe Vera Gel business. They leveraged the rising demand for natural and herbal products and established a strong brand presence. By maintaining quality and affordability, Patanjali captured a significant market share, making Aloe Vera Gel one of their best-selling products.
Conclusion
If you are thinking of manufacturing setup, you should avail loan from the Government and get MSME license for benefit. Entering the Aloe Vera Gel manufacturing business in India offers immense potential due to growing consumer preference for natural and organic products. You need to understand the target audience and the market.
Knowing your competition is also an important aspect and how they achieved success which you can replicate. You can go for export as there is huge demand for organic products in foreign and developed countries. With careful planning, adequate investment, and effective marketing, you can establish a profitable venture. By understanding market dynamics, you can position your Aloe Vera Gel business for success in the competitive landscape of the wellness and cosmetic industry.
