Quanto Agroworld oil output fell 46% during relocation

Quanto Agroworld reported essential-oil output of 4.71 tonnes in FY 2025-26, 46% below 8.8054 tonnes in FY 2024-25, as it relocated distillation operations to Ravalgaon. Capacity utilisation fell from 78.22% to 41.91%, while the company plans a fivefold increase in installed capacity to 56.25 tonnes a year.

Why did Quanto Agroworld oil output fall 46% during relocation?

Quanto Agroworld’s reported output fell because it discontinued manufacturing at its Shahada, Nandurbar district, and Amalaner, Jalgaon district, facilities and transferred operations to Ravalgaon in Nashik district. Production in the FY 2025-26 table was 4.0954 tonnes lower than the 8.8054 tonnes reported in FY 2024-25, while installed essential-oil capacity remained 11.25 tonnes in both periods.

The company states that the FY 2025-26 production figure covers April to June 2025 and that production resumed after the first week of October 2025 after the plant moved to Ravalgaon. The disclosed FY 2025-26 utilisation of 41.91% therefore reflects a relocation-affected period, compared with 78.22% in FY 2024-25 and 85.96% in FY 2023-24.

Output had also declined by 0.8646 tonnes between FY 2023-24 and FY 2024-25, when production moved from 9.67 tonnes to 8.8054 tonnes at the same 11.25-tonne installed capacity. The sharper FY 2025-26 decline coincided with the interruption created by shifting machinery and restarting production at a new location.

What does the Ravalgaon consolidation change?

Quanto Agroworld is moving processing and steam distillation into one Ravalgaon facility instead of operating two separate legacy units. A Chartered Engineer’s Report dated March 20, 2026 found the relocation technically feasible and the Ravalgaon site suitable for the proposed expansion, subject to routine erection, commissioning and statutory compliances.

The equipment shifted from the legacy units includes three steam generators, six 1.5-tonne distillation tanks, four 500-kilogram distillation tanks, four 20-square-metre condensers and 10 separators. The company says centralising those assets is intended to reduce duplicate utilities and bring maintenance, engineering supervision and quality oversight under one technical team.

The Ravalgaon processing and distillation unit has 20 guntas allotted within Block No. 18: 4 guntas are used for the existing setup, 12 guntas are proposed for additional machinery and 4 guntas remain for possible future expansion. The company also cites the facility’s proximity to agricultural belts and the Mumbai-Agra Highway as relevant to inbound lemongrass movement and outward essential-oil dispatch.

How large is Quanto Agroworld’s planned capacity expansion?

Quanto Agroworld plans to raise certified essential-oil processing capacity from 11.25 tonnes a year to 56.25 tonnes a year by restoring transferred capacity and adding 45 tonnes. The 56.25-tonne figure is five times the existing 11.25-tonne capacity, but it is an expected post-commissioning capacity rather than reported production.

The company proposes to use Rs 3.7924 crore for distillation-plant machinery, including nine charging-vessel sets, nine condensers, 36 cages, nine oil-water separators, two cooling towers and nine 500-kilogram-an-hour wood-fired steam-boiler sets. The capacity estimate is based on added plant and machinery, more operating vessels, improved batch cycles and optimised operating hours.

Steam distillation uses steam to carry volatile oil from lemongrass biomass into a condenser, after which the essential oil is separated from hydrosol, or floral water. Quanto Agroworld states that each distillation batch typically takes up to five hours and samples from every batch undergo third-party laboratory testing before sale.

The present 11.25-tonne capacity is calculated from certified raw-material processing capacity of 9 tonnes a day over about 250 operating days and average oil recovery of 5 kilograms per tonne. Reaching the planned 56.25 tonnes will require installation and commissioning of the new equipment, stabilised operations and sufficient biomass availability.

Can Quanto Agroworld’s farms supply expanded oil capacity?

Quanto Agroworld estimates that its 424.04 developed acres could produce 76,320 kilograms, or 76.32 tonnes, of essential oil a year, above the planned 56.25-tonne processing capacity. That estimate assumes annual green-lemongrass yield of 30 metric tonnes an acre and essential-oil recovery of 6 kilograms per tonne of green grass.

On the stated assumptions, the developed acreage would yield 12,720 metric tonnes of lemongrass biomass annually. The company says this potential remains subject to seasonal variation, agronomic conditions, crop cycles and processing efficiency, so the calculation is not a production forecast.

The farm-potential calculation and current plant-capacity calculation also use different recovery assumptions. Farm potential uses 6 kilograms of oil per tonne of green grass, while the certified 11.25-tonne plant capacity uses 5 kilograms per tonne; the two measures should therefore not be treated as directly equivalent output estimates.

Quanto Agroworld has access to about 737 acres under Maharashtra State Farming Corporation Limited arrangements, of which 312.57 acres are under phased development. The company proposes to develop that land through irrigation, farm equipment and plantation inputs, and separately proposes to acquire about 688 acres for phased cultivation of medicinal and aromatic plants, subject to identification, acquisition or lease arrangements and approvals.

What must hold for the expansion to be used?

Quanto Agroworld depends primarily on lemongrass leaves and other aromatic plants cultivated on leased farms, although it also purchases some material from local farmers at market-linked prices. Distillation throughput therefore depends on acreage, irrigation infrastructure, harvest schedules, crop yields and the availability of third-party biomass when required.

The company identifies agricultural and climatic risks, essential-oil price volatility and dependence on government-leased land subject to renewal and regulatory terms in its stated risk profile. Its 424.04 developed acres are the basis of the 76.32-tonne indicative oil-output calculation, so lower yields or recovery rates would affect biomass available for the 56.25-tonne facility.

Saleable production also depends on meeting buyer specifications. Quanto Agroworld states that it uses gas chromatography, a method for analysing chemical composition, and other laboratory testing to verify measures including citral levels and purity before supplying business-to-business customers in herbal tea, fast-moving consumer goods, personal care, home care, fragrance and wellness categories.

Conclusion

Quanto Agroworld’s reported 46% fall in essential-oil output occurred alongside the transfer of its distillation assets from two legacy facilities to Ravalgaon. The change reduced reported utilisation to 41.91% at unchanged 11.25-tonne capacity, while the proposed project would increase certified capacity by 45 tonnes to a total of 56.25 tonnes annually.

The next disclosed milestones are commissioning and stabilisation of the Ravalgaon expansion, installation of machinery funded from the Rs 3.7924 crore plant budget and development of 312.57 acres of existing land. Whether the facility reaches its proposed throughput will depend on raw-material supply, farm yields, recovery rates, operating conditions and statutory compliances.