Here’s a comprehensive business plan / feasibility study outline for Sandalwood (Santalum spp.) cultivation, resin, and oil extraction, tailored for integration with CAPI/COPI agroforestry and CESI SC-CO₂ operations.
/ Feasibility Study
1 — Executive Summary
- Business Name: Crown Sandalwood Ventures Inc. (CSVI)
- Vision: To become a leading producer of sustainable Sandalwood heartwood and SC-CO₂ essential oils in the Philippines, supporting luxury perfumery and aromatherapy markets.
- Mission: Integrate high-value Sandalwood production into multi-species agroforestry systems with Nutmeg and Agarwood, applying sustainable propagation, cultivation, and extraction methods.
- Products:
- Sandalwood heartwood / chips
- SC-CO₂ Sandalwood oil (perfumery-grade)
- Sandalwood powder and cosmetic extracts
- Revenue Streams: Domestic sales, export markets, high-end perfumery supply (ANOC / Ethereal Scent), SC-CO₂ oil for luxury cosmetics.
2 — Market Analysis
- Global Demand: Sandalwood oil is highly valued in perfumery, cosmetics, and aromatherapy. Prices for Indian Sandalwood oil: USD 2,000–4,000/kg; Australian Sandalwood oil: USD 800–1,500/kg.
- Philippine Context: Untapped potential for sustainable plantation-grown Sandalwood, reducing dependency on imports.
- Target Customers: Perfume houses, cosmetic brands, aromatherapy companies, high-end spice markets.
- Market Trends: Demand for sustainably sourced, traceable, high-purity SC-CO₂ Sandalwood oils is increasing; niche luxury market growth is strong.
3 — Technical Plan
3.1 Propagation
- Source: COPI tissue-cultured elite clones for true-to-type chemotypes
- Nursery: Sand:loam:compost mix; host plants (legumes/Nutmeg) to support semi-parasitic growth
- Germination: 4–12 weeks; GA₃ pre-treatment optional
- Clonal propagation: Shoot apices/nodal segments via organogenesis
3.2 Planting & Agroforestry Integration
- Spacing: 3–5 m × 3–5 m (400–1,100 trees/ha)
- Host Trees: Nutmeg, Agarwood, Elemi, or nitrogen-fixing legumes
- Multi-strata system: Nutmeg canopy + Agarwood mid-layer + Sandalwood understory
3.3 Care & Maintenance
- Fertilization: Moderate NPK, organic matter, avoid excessive nitrogen
- Irrigation: Young trees frequent watering; mature trees drought-tolerant
- Pruning: Minimal, maintain straight bole for heartwood
3.4 Harvest
- Heartwood: 15–20 yrs for commercial harvest
- SC-CO₂ oil: 2–5% yield of heartwood; fractionation for perfumery
- Postharvest: Chip/powder, SC-CO₂ extraction, storage in inert conditions
4 — Production Timeline & Yield Estimates (Per Hectare)
| Year | Activity | Yield / Revenue Potential |
|---|---|---|
| 0–2 | Nursery & planting | Establish seedlings; host integration |
| 3–5 | Juvenile growth | No commercial yield yet |
| 6–10 | Early growth | Host benefits, minor oil extraction experiments |
| 15–20 | Full heartwood maturity | Heartwood: 30–50 kg/tree; Oil: 2–5% of heartwood |
| 20+ | Harvest cycles | Sustainable periodic harvests; SC-CO₂ oil premium pricing |
5 — Financial Plan
| Item | Cost (PHP/ha) | Notes |
|---|---|---|
| Land preparation | 500k–800k | Clearing, leveling |
| Seedlings | 1–2 M | COPI tissue-cultured clones |
| Irrigation & infrastructure | 400k–600k | Drip system, nursery, maintenance paths |
| Fertilizers & soil amendments | 200k–300k/year | Organic + mineral |
| Labor | 300k–500k/year | Nursery, maintenance, harvest |
| SC-CO₂ extraction setup | 5–10 M | Pilot scale; optional scaling for perfumery-grade oil |
Revenue Projections (per ha at full maturity)
| Product | Yield | Price (PHP/kg) | Annual Revenue (PHP) |
|---|---|---|---|
| Heartwood | 30–50 kg/tree | 50,000–100,000 | 20–50 M |
| SC-CO₂ Oil | 2–5% of heartwood | 500,000–1,000,000 | 5–25 M |
| Powder / cosmetic extracts | 10–15% heartwood | 20,000–30,000 | 1–3 M |
Break-even: ~12–15 years (medium-term cash flow can be supported via intercropping with Nutmeg/Agarwood).
ROI: 15–25% IRR long-term; higher with SC-CO₂ oil extraction and perfume-grade fractionation.
6 — Risk Assessment
- Biological: Pests, diseases, host failure; mitigated via integrated pest management and robust propagation protocols
- Market: Volatile oil prices; mitigated via forward contracts, ANOC perfumery integration
- Technical: Long maturation period; mitigated via intercropping Nutmeg/Agarwood for medium-term revenue
7 — Marketing & Sales Strategy
- Primary Channels: Luxury perfumery brands (ANOC / Ethereal Scent), cosmetic manufacturers, spice and oil export markets
- Value Proposition: Sustainable, traceable Sandalwood, SC-CO₂ oil fractionated for top/middle/base notes, integrated agroforestry system
- Branding: “Crown Sandalwood” – emphasizing traceability, purity, and ethical sourcing
8 — Sustainability & Compliance
- CITES & DENR: Sandalwood (S. album) regulated; ensure permits for propagation and harvest
- Agroforestry approach: Enhances biodiversity, soil fertility, and carbon sequestration
- Certifications: Organic, fair-trade, sustainable harvesting
This plan makes Sandalwood commercially viable when integrated with Nutmeg and Agarwood, supporting CESI and ANOC operations with traceable high-value perfumery-grade oils.
If you want, I can now create a visual “Sandalwood + Nutmeg + Agarwood” agroforestry model with timelines, harvest windows, and projected revenues, fully ready for a pitch deck or operational plan.
Do you want me to make that next?