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How To Start Small Scale Jojoba Oil Manufacturing Business

Seed from the Jojoba plant is the only botanical source of commercial quantities of unsaturated straight-chain wax esters. Jojoba Oil is a liquid wax, as opposed to other vegetable oils, which are triglycerides. Here in this article, we intend to explore how to start a small scale jojoba oil manufacturing business.

The Jojoba oil is a complex solution of long chain, unbranched esters ranging from thirty-four to forty-eight carbon atoms. Additionally, it is an essential formulation ingredient for hair care and cosmetic products industry.

However, any individual can start this business with substantial capital investment. In India, Rajasthan occupies the 1st position in the large scale cultivation of the exotic Jojoba plant. Additionally, jojoba cultivation takes place in the states like Haryana, Gujarat, Punjab Orisha, Uttar Pradesh and Andhra Pradesh.

Jojoba Oil Characteristics & Features

The Jojoba plant produces beans, which contain up to 50% their weight in oil. Generally, it is an unsaturated liquid wax. The product has high viscosity index and good miscibility in mineral oil base stocks. Additionally, the product is very compatible with other additives.

  • Appearance: Light golden colored fluid
  • Boiling point High
  • Freezing point Low
  • Smoke point High
  • Flashpoint High
  • Decomposition temp. 315­°C

Hydrogenated Jojoba Oil improves the cushion and viscosity of cosmetic formulations. Because of its high melting point, this product is particularly useful in elevated temperature stability applications. Additionally, hydrogenated Jojoba Spheres are available in three standard sizes and colors.

Jojoba Oil Market Potential

Jojoba oil has excellent medical abilities as a carrier for medicine preparation, a stabilizer for antibiotics, and as an appetite depressant. Therefore, its penetration in the pharmaceutical sector is increasing. The growing trend of producing herbal medicines owing to the side effects of allopathic medicines is supposed to result in increasing penetration of jojoba oil in the pharmaceutical sector. This factor is expected to play a fundamental role in improving the market scenario of the product these days. Additionally, the market is still realizing its potential owing to the rising awareness of naturally derived products among consumers. Additionally, jojoba oil has versatile industrial uses such as :

  • Cosmetics (more than 200 products)
  • Lubricants
  • Factices and Adhesives
  • Medicines Pharmaceuticals
  • Source of Acids and Alcohols
  • Electric Insulators
  • Foam Control Agents, Plasticizers, Transformer oil etc.

Jojoba Oil Manufacturing Business Compliances

In starting the manufacturing business, you will need to obtain different registrations and licenses from Govt. authorities. It is advisable to check your state law. However, here we put some of the basic considerations.

  • First of all, you must register your business entity with ROC.
  • Apply for Trade License from the local Municipal authority.
  • Additionally, apply for MSME Udyog Aadhaar online registration.
  • Check your state law whether the product is Vatable or not
  • Apply for BIS certification for ISI Mark.
  • Protect your company brand name with Trademark registration
  • If you want to export the product you will need to obtain the IEC from the concerned department.

Related: Small Business Registration In India | Basic Guide

Jojoba Oil Manufacturing Plant Setup & Machinery

In starting this manufacturing business, you will need to secure a location. However, we would recommend you to start this business from a rental space. Additionally, you will need to arrange the electricity, water, and skilled manpower for smooth factory operation. Some of the major required machines are

  • Oil extractor
  • Storage tank
  • Steam boiler
  • Dryer

There are different types of manufacturing technology available. Therefore, you can avail by paying specific fees to the research institutes. From 2.5 kg of jojoba seeds, you can expect 1 kg of jojoba oils. Additionally, you must ensure the regular supply of jojoba seed to your factory.

Related: 15 Profitable Small Business Ideas For College Students

Jojoba oil has a very potential market demand in the international market. Therefore, you must cater the export market for better profitability.