How to start Camphor making business





What is camphor ? It is a translucent white solid which has an intriguing-menthol-like smell and sour taste. It comes in two varieties :

The naturally produced camphor comes from Japan, Vietnam and Taiwan from the camphor trees abundantly present there.

The synthetic camphor is produced in india from its abundantly present pine trees.

The most common use of camphor is in religious activities and vapour rubs.

Now why is it that the India still produces only 17% of camphor here whereas its import for it is 80% ?

The typical Indian consumer’s application of camphor for religion purposes that comes with exceptional purity has increased their believe and thereby their demand for implementing camphor’s properties to other various uses.

So here are the the further knows and hows that’ll get you hooked up in becoming a part of this industry :

   I.        Market potential and uses

The market potential for camphor making business is precisely high because it’s still growing. The properties of camphor are

Giving rise to new applications of camphors. This is thereby increasing the presence of camphor in every possible industry.

And here’s how :


·       Camphor tablet : The small camphor tablets is used for religious activities, most likely as a samagri in puja, keeping the religious sentiments intact.

·       Camphor powder : The main use of camphor powder is to make camphor tablets using dye cast and is also used as a part of certain recipes for a type of food to built in aroma thereby expanding its horizon in the beauty and food industries

·       Camphor oils : lastly, camphor oil is used as an aroma oil termed as an essential oil treating a number of conditions related to skin and hair, empowering the hospitality industries ( spa, salons). It is also used in value rubs, medicines etc to improve chest congestion thereby boosting the pharmaceutical industry.

 II.        License required

The licenses required to run a camphor making business is as follows :

·       Factory license

·       GST registration

·       PAN and Aadhar cards

·       NOC from the pollution control board

·       Udyog Aadhar under MSME registration

III.        Investment required :

It requires an overall investment of ₹1,11,000

1.  Camphor making machine  ₹75000
2.  Packing material  ₹26000
3.  Accessories ₹ 10000

IV.        Profits

From selling 60,000 pallets per day.

Providing a monthly income of ₹ 1,10,000

1)  MRP ₹ 24000
2)  Ex commission  ₹ 14,400
3)  Daily income ₹ 4,400

V.        Target consumers

The in-discovery properties of camphor is giving rise to numerous applications making it a by product in almost every industry. So the existing and potential target consumers of this industry are :

·       Pharmaceutical industry : The pharmas use camphor for medicinal purposes in ointments or rubs for curing cold sores, haemorrhoids, congestion’s and cough

·       Agricultural industry : The green houses make use of camphor as an insecticide for preventing crop/plant deterioration

·       Chemical industry : it uses camphor as a moth repellent, plasticiser for nitrocellulose, in crackers etc

·       Food industry : It makes used of camphor for adding aroma to the food and also sometimes to ensure the quality of food when stored.

·       Beauty/cosmetic industry : It is used by these industries as aroma therapy and massage oils for skin eg: curing fungi on toe nails etc  and also for hair related issues

·       Households : They make use of camphor as a part of religious activities.

VI.        Raw material required

Raw materials required in camphor making are as follows :

·       Dyes

·       Hand tools

·       Weighing balance

·       Camphor powder

·       Sales tax, freight and insurance

·       Packaging material

VII.        Machine required

The machine required in camphor making business :

·       Camphor powder processing machine

·       Tablet moulding machine

·       Screener

·       Cooler

·       Wax wrapping machine

·       Multi punch tablet machine

VIII.        Area required :

The area required for camphor making business is approximately 400-500 sq feet. It can be marketed around : holy places, temples, near chemical retailers, pharmacies etc

IX.        Manpower required

A camphor making business typically requires

·       2 skilled labours

·       3 unskilled labours

·       1 production manager

Moreover ample training in terms of equipment handling, safety precautions, machine using procedure etc must also be provided with

X.        Business model and growth

A. Value proposition : The unique selling point and the  value which comes with the camphor making business is:

·       It’s still-in-discovery applications because of its properties and nature

·       Low-investment

·       It’s implementation as an oil, tablet or powder in almost every possible industry in India

B. Target consumers : The target consumers for your manufacturing plant is limited to the niche you wish to cater or demands you want to meet. However the camphor uses are spread across all the industries :

·       Pharmaceutical

·       Chemical

·       Agricultural

·       Beauty

·       Food

·       Households

C. Competitor review : Your small scale camphor plant may face a low key competition from the big camphor sharks Like :

·       Mangalam organics limited

·       Kanchi kapooram limited and

·       oriental aromatics limited

D. Marketing strategy: The marketing strategy which could be used by your camphor making business could be developing

·       Highlighting in ads and print media the quality and affordability which comes with the camphor you manufacture

·       Highlighting the existing and potential uses of camphor and how it’s made

·       Certifying the quality of your camphor through show of licenses etc

Growth :

·       The global camphor industry is projected to rise at a CAGR of 7.9% from 2017-2027

·       Camphor’s production and demand is the Asia Pacific has been consistently high because of the resources and applications available and is seeming to be high because of its rising demand from the foreign countries like USA, UK etc

XI.        Profit margin

Camphor making business provides with :

·       Profit margin : 11.7%

·       Sales margin : 40%

XII.        Suggestions

This growing business requires just a creative mind to put the applications of camphor in front of the eyes of those who need them and we know you’ve got one.

So here are the facts you must consider if you want to get into the camphor business :

·       Firstly, camphor making comes with low investment I.e just two or machines and little manpower and ensures sufficient profits

·       Secondly, camphor comes with a consistent demand because it also has religious sentiments of people attracted to that product and efficient applications in the pharma, chemical and agricultural industries

·       Lastly, camphor making doesn’t invite much competition because of the difference in niches you’ll be catering to.

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