The Group's initiative to undertake its own sandalwood plantation is reflective of its long-term vision to be fully self-reliant and further consolidate its leadership in the sandalwood business. It is a shinning example of consolidation through backward integration. What's more, sandalwood being the costliest raw material, the plantation would provide the Group with a platform to better manage the market dynamics relating to demand, supply and cost of sandalwood.
Anticipating the ever-increasing gap between demand and supply of sandalwood oil, the company has undertaken sandalwood plantation. Total area procured by the company for sandalwood plantation is 1,000 acres. The land procured is in the state of Madhya Pradesh. The maturity period for sandalwood trees in 10 years.
Being a government regulated commodity, export of sandalwood oil in its crude form is prohibited. Domestic sales through essential oil and speciality perfumery compounds based on sandalwood oil account for 70 per cent of the company's total earnings, while the reminder is through exports of agro-products.
The facility in Sampla manufacturing essential oils has an annual production capacity of 70,000 kgs. It is also Asia's largest essential oil manufacturing facility. While, the facility in Agartala has an annual production capacity of 52,437 kgs.
We are India's largest manufacturer of pure sandalwood oil, operating India's largest sandalwood oil manufacturing facility at Sampla, Haryana.
pure sandalwood oil, operating India's largest sandalwood oil manufacturing facility at Sampla, Haryana.
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Raw Material: | Wood |
Ingredient (Wood): | Sandalwood |
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