DiOM aims to democratise the agri-business in India through its collaborative farmland ownership model offering sustained growth.
We take inspiration from time-tested agri-businesses around the world and wish to bring their inherent advantages to fuel profitability for our partners, while also putting the country at the agricultural centre stage.
Sandalwood or Chandan (also known as Santalum album) is one of the world’s most expensive hardwoods. It is a remarkable natural asset, sought after around the world for its fragrance and medicinal qualities.
Sandalwood’s significance dates back to Vedic times as the holy tree of Ayurvedic medicine and Hindu tradition. Owing to its pleasing scent, it evokes great faith among people for worship, holy rituals and also for relieving stress and promoting mental peace.
It has been a traded commodity for over 2,000 years, earning the reputation of “Wooden Gold”, and its essential oil as “Liquid Gold”, a highly valued product.
Sandalwood is not merely another timber source. It is a USP product which is always in high demand. Due to overexploitation of wild stocks, sandalwood has become a rare species, a tree threatened by extinction. Consequently, there is a long term global shortage of supply.
Sandalwood is well known for its medicinal qualities. It finds extensive use in many health and wellness products.
Sandalwood essential oil is highly in demand by the pharma and medical industry (TCM Western medicine) as well as the beauty ( perfumes, lotions), wellness (aromatherapy) and food industry (flavouring). The medicinal effects of sandalwood oil are scientifically proven to have anti-inflammatory, antibacterial, anti-fungal and anti-proliferative properties.
Sandalwood evokes great faith among people and is widely used for worship and performing holy rituals.
Sandalwood is a popular choice for over 1 billion people worldwide who use it as part of their culture for traditional rituals like tilak / bindi, incense, daily pujas, handcrafted wooden figures (Ganesha, Buddha), funeral pyres, etc. Buddhist monks are said to inhale sandalwood smoke to enhance meditation and spiritual connection. Huge markets for Sandalwood in aromatherapy (as wood sticks/incense), and in jewellery (like spiritual malas) are spreading from Asia globally.
Owing to the possession of one of the most pleasing scents of the world, Sandalwood is a popular choice in fragrances, for relieving stress and promoting mental peace.
About 47% of all perfumes created since 1790 contain sandalwood notes, according to the global perfume industry standard. There are two main reasons for this unique popularity of sandalwood oil in fragrances. One is the distinguished warm woody scent. Far more, it belongs to the strongest natural fixatives, enabling a perfume to last longer on the skin (due to its unusually high boiling point at 276°C). Because of sandalwood’s dramatic implosion of supply and explosion of its price, real sandalwood (Santalum album) has also become scarce in perfumes, mostly limited to luxury brands.
Sandalwood is not merely another timber source. It is a USP product which is always in high demand.
Due to overexploitation of wild stocks, sandalwood has become a rare species, a tree threatened by extinction. Consequently, there is a long term global shortage of supply.
Entry Value per SW Tree in 2024 - ₹4,03,250
| Year | 4% | 8% | 12% |
|---|---|---|---|
| 2025 | ₹4,19,320 | ₹4,35,510 | ₹4,51,640 |
| 2026 | ₹4,36,155 | ₹4,70,351 | ₹5,05,837 |
| 2027 | ₹4,53,601 | ₹5,07,979 | ₹5,66,537 |
| 2028 | ₹4,71,745 | ₹5,49,617 | ₹6,34,522 |
| 2029 | ₹4,90,615 | ₹5,92,507 | ₹7,10,664 |
| 2030 | ₹5,10,240 | ₹6,39,907 | ₹7,95,944 |
| 2031 | ₹5,30,649 | ₹6,91,100 | ₹8,91,457 |
| 2032 | ₹5,51,875 | ₹7,46,388 | ₹9,98,432 |
| 2033 | ₹5,79,350 | ₹8,06,099 | ₹11,18,244 |
| 2034 | ₹5,96,909 | ₹8,70,587 | ₹12,52,433 |
| 2035 | ₹6,20,785 | ₹9,40,233 | ₹14,02,725 |
| 2036 | ₹6,45,616 | ₹10,15,452 | ₹15,71,052 |
| 2037 | ₹6,71,441 | ₹10,96,688 | ₹17,59,579 |
| 2038 | ₹6,98,299 | ₹11,84,423 | ₹19,70,728 |
| 2039 | ₹7,26,230 | ₹12,79,177 | ₹22,07,215 |
*Value Growth illustration for a typical Sandalwood Tree
(with annual growth rate case scenarios between 4% to 12%)
- Based on Market Analysis Data by Technavio
(an industry leading market research and advisory firm)
*Entry Value per Sandalwood Tree determined as per prevailing market rate in 2024
“The price of S. album sandalwood in India increased at a compounded rate of 15.1% between 1992 and 2014 and the wholesale price for high-quality East Indian sandalwood oil reached ≥USD 3000 kg -1 (for perfumes and new pharmaceutical uses in the United States) in 2016 and early-to-mid 2017.
Source: Article by L.A.J. Thomson (2020), University of the Sunshine Coast (Australia)
The Local demand for Sandalwood oil in India is estimated at a minimum of 250 tonnes in 2040. India will likely be a net importer of sandalwood heartwood and/or oil in 2040.
Source: Article by L.A.J. Thomson (2020), University of the Sunshine Coast (Australia)
The sandalwood oil market size is projected to increase by USD 505.75 million, at a Compound Annual Growth Rate (CAGR) of 6.49% between 2023 and 2028. The market share growth by the Indian sandalwood oil segment will be significant during the forecast period.
Source: Article on Sandalwood Oil Market Analysis by Technavio
