The Board of Investments (BoI) has granted incentives to an essential oil producer for its P109.5-million project in Zambales.
The attached agency of the Department of Trade and Industry (DTI) said Monday that it has approved the registration of Iba Botanicals Inc., whose operation is expected to start this month.
The project is seen to contribute P245.28 million to the economy. It will produce essential oil export products from ylang-ylang, vetiver and elemi species, setting India, Thailand, Malaysia and Singapore, among others, as target markets.
It has a capacity of 35.6 metric tons or 35,688 kilograms per year. Iba Botanicals uses organic farming techniques and is in the process of securing a third party international organic certification.
The company may employ 430 workers by the fifth year of operation. It will hire up to 200 direct workers from a community in the vetiver plantations in San Juan, Zambales.
“As the pandemic has affected the employment of the Filipinos, the project will help in easing both through generation of jobs that will be brought during its construction and commercial operations,” the BoI said in a statement.
The DTI attached agency noted that “extensive” research and development was conducted in studying the demand for the said products. This includes the establishment of trail plantation areas in order for the sample product to be produced for testing and market development.
The common essential oils in the country used in aromatherapy are extracted from endemic plants, BoI noted, such as ylang-ylang (cananga odorata), lemon grass (citronella), patchouli, vetiver, castor seeds (castor oil), pili, eucalyptus (mint), malunggay, sampaguita, sambong, and ginger.
Essential oils are aromatic essences that come from plants, flowers, trees, fruits, bark, grasses and seeds. These are deemed essential inputs for producing items in perfumery, personal and healthcare, pharmaceuticals, cosmetics, household care, food and beverage industries, among others.
In 2021, the global essential oils market is estimated to have amounted to $10.3 billion. It is expected to grow to $16 billion by 2026.