Start a Herbal Hair Oil Making Business

  
(342). Start a Herbal Hair Oil Making Business
 Hair enhances the appearance & personality and thus needs proper care.  Hair oil is essentially used to protect hair from early falling and/or premature discolouring to gray.  Moreover, application of proper oil helps to add luster to the hair, retaining them soft and flowing, prevent premature hair falling, keep the brain cool etc.  The oil should be non-sticky, addition of perfume improves the fragrance and freshness and enhances the popularity.

MARKET POTENTIAL:
 Hair oil is a mostly common commodity used every where.  The demand of perfume hair oil is visible from rural area to cosmopolitan cities.  The ladies used it for both its functional purpose as well as a beauty care commodity.  The demand is increasing at par with the awareness of hair care, advertisement messages in different media, satellite TV channels and enhancement of purchasing power of the individuals.  At
the same time Hair oil is having export worthyness too. The Indian market for hair care is estimated more than Rs.1000 crores and perfumed hair oil is an important part of it.


BASIS AND PRESUMPTION:
1.  Working hours.  : Single shift or 8 hours, for 300 working days in a year.
2.  Capacity Utilisation : 60% during 1st year 75% in 2nd year  90% in 3rd year and onwards.
3.  Salary and wages  : Monthly basis.
4.  Margin charges  : 35% of total capital investment.
5.  Interest charges  : 14% has been calculated on  total capital investment
  Considering the opportunity cost of margin money.
6.  Power tariff  : Rs.4.50 per unit.


IMPLEMENTATION SCHEDULE
The project is estimated to commence production within one year from the conception of the project. The delivery of the machinery is expected within 3 months from the placement of orders.  The time taken for preparation of the project report is 2 months. The loan formalities will take about 6 months and
one month will be taken for installation and erection of machinery.

TECHNICAL ASPECTS:
Manufacturing Process:
 The hair oil is produced from either one oil or a combination of oils.  In this project it is suggested to combine olive oil, sunflower oil and coconut oil.  Further to this, Amla extract has been added as an ayurvedic
value and perfume is mixed to get the scented effect.First of all, the herbal extracts like Amla extracts, Makka, Bramhi, Nilaka, Mehandi, Badam, Bidda with 6-8 times of water are boiled in a S.S.Vessle for about 1-2 hours, then the liquid extract is filtered.  The oil ingredients as per recipe are added together then with herbal extracts and boiled under constant stirring and control temperature.  The boiling procedure is continued till the evaporation of total water content in the stove. The oil stove is then cooled and filtered through cotton cloth and left for overnight.  Next morning, perfume is added with slow and continuous stirring and kept for about 8-10 hours for maturation.  Then the oil is filled into pet bottles and sealed.

All the oils are added together and heat at 300C then other ingredients are added into the mixing tank.  Stirring is done for about 30 minutes.  Then the stock is filtered and filled in the bottles and sealed.


Quality Control and Standards:
The quality of these products are maintained as per BIS specification vide IS 7123 – 1984.
PRODUCTION CAPACITY     : Hair Oil 6,00,000 ltrs. Of 100 ml packs.
MOTIVE POWER REQUIREMENT : About 60 hp
POLLUTION CONTROL  : This unit does not produce any toxic  pollutants.


FINANCIAL ASPECT:
I)   Land and Building
 Built up Area on rent for 1000 sq. ft. @ Rs.10/-   =    Rs.10,000/- per month.
II)  Machinery & Equipment:
Sl. No.           Name of Machine                   Qnty.              Price                        Value (Rs)

01.               Heating Apparatus                    2                    5,000                         10,000
02.      S.S. Jacketed manufacturing tank
                    with stirre                                 1                     60,000                      1,20,000
03.             Transfer pump                            1                     20,000                          20,000
04.          Bottle Filling machine                     1                     40,000                          40,000
05.          Errection & Electrification                                    50,000                           50,000
                                                                                                                  TOTAL 2,40,000
III)  Other Fixed Assets:
 1. Tools and equipment   …                              40,000
 2. Working Table Furniture and fixtures…         50,000
 3. Testing Equipments   …                                40,000
 4. Office Equipments   …                                 50,000
 5. Stand by D.G. set 50 KVA  …       -
                     ---------
                                                       Total:           1,80,000 
IV)  Total Plant and Machinery  and other fixed Assets(II + III)             4,20,000
V)  Preliminary Expenses :                                                                        30,000
VI)  Total Fixed Capital Requirement : (I + IV + V)=                            4,50,000 
VII)  Raw material (PM)
Sl. No.               Particulars Ind/ Imp                    Unit                     Qnty.              Price     Amount

01.                Olive Oil Ind.                                   Ltrs.                         500               400          1,00,0000
02.                  Veg. Oil Ind                                   Ltrs.                       42                   50 60           2,55,000
03.                  CoconutOil Ind.                             Ltrs.                       250                   100          25,000
04.   Perfume Ind                                                                                25                 1,000                25,000
05.    Colour cosmetics Ind.                          0.01 100 1
06. Amla Extract Ind.                        250 1,200 3,00,000
07. Packing material (bottle 100 ml) Ind.  50,000 3 1,50,000
08. Packaging Ind.  L.S. 1,25,000
                                                                                                                       TOTAL: 9,55,000

 Production Supervisor cum chemist 1 no. @ 6000/-    6,000/-
 Skilled Worker   3 nos. @ 3,000/-     9,000/-
 Semi-Skilled worker   4 nos. @ 2,500/-  10,000/-
 Unskilled worker   3 nos. @ 2,000/-     6,000/-
 Assistant cum store keeper  1 no. @ 3,000/-    3,000/-
 Security/ Watchman   2 nos. @ 2,000/-    4,000/-
 Expected pay bill per month      32,000/-
 Add 20% perquisites                           6,000/-
              Total:            38,000/-
VIII)  Utilities

Electricity 2000 units @ Rs. 4.50       9,000/-
IX)  Other Expenses (pm)
 i. Rent     …    10,000/-
 ii. Repairs & maintenance  …      3,000/-
 iii. Other consumable stores  …      2,000/-
 iv. Insurance    …      1,000/-
 v. Travelling expenses   …      5,000/-
 vi. Telephone/Fax/Telegram exp. …      2,000/-
 vii. Printing & Stationery  …      1,000/-
 viii. Publicity and advertisement …      5,000/-
 ix. Other expenses   …      2,000/-
         Total:   31,000/-
X)  TOTAL RECURRING EXPENSES PER MONTH:  10, 33,000/- XI)  WORKING CAPITAL REQUIREMENT:        
 3 month’s recurring expenses                                         30, 99,000/-
           Say       Rs.31, 00,000/-
XII) TOTAL CAPITAL INVESTMENT:

 I) Fixed Capital         Rs.  4, 50,000/-
 II) Working Capital for 3 months      Rs.31,00,000/-
         Total:     Rs.35, 50,000/-
XIII)  COST OF PRODUCTION (PER ANNUM):
 1. Recurring expenditure per annum            1, 24, 00,000/-
 2. Depreciation on Plant & M/c @ 10%    24,000/-
  Tools & Equip. @ 25%      20,000/-
  Furniture and fix. @ 20%      64,000/-
 3. Interest on total capital investment @ 14%          4,97,000/-
         Total:   1, 29, 61,000/-
XIV)  EXPECTED SALES (PER ANNUM):
 Hair Oil : 6,00,000 Bottles (100 ml) @ 25/- = Rs.1,50,00,000/-
XV)  PROFIT : Net Sales – Cost of Production =  Rs.   20, 39,000/-
XVI)  PERCENTAGE OF PROFIT (ON NET SALES) 13.59%
XVII) RATE OF RETURN:      57.44%
XVIII)  BREAK EVEN POINT:
 Total fixed cost (per annum):
 1. Rent      … Rs. 1, 20,000/-
 2. Insurance     … Rs.    12,000/-
 3. Depreciationk on tools, equipment & furniture Rs.    64,000/-
 4. Interest      … Rs. 4, 97,000/-
 5. 40% of salary & wages   … Rs. 1, 82,000/-
 6. 40% of other contingent expenses
  (excluding rent & insurance)  … Rs. 1, 39,000/-
         Total  Rs.10, 14,000/-
XIX)  Break-Even-Point(%) = Fixed Cost x 100        Fixed Cost + Profit
      = 33.21%
LIST OF MACHINERY SUPPLIERS 
BALL MILLS
1. HSP Engineering Company, C-179/1, Bulandshahar Road, Site No.1.
Ghaziabad (UP).
2. New Lahore Welding & Engineering Works, B 75, Mayapuri
Industrial Area, Phase-1, New Delhi – 110 064.
3. Mechamico Manufacturing Engineers, 15,Okhla Industrial Estate,
Phase III, New Delhi – 110 020.

BOTTLE FILLING, SEALING AND WASHING MACHINE
1. Amar Mechanical Engineers, 6, Industrial Area, N 17, Faridabad – 1.
2. Amar Enterprisers (India), F11, DSIDC Industrial Complex, Rohtak
Road, Nanglol, Delhi – 110 041.
3. Bottling Machinery Company of India, B-280, Okhla Industrial Area,
Phase-1, New Delhi – 110 020.

BOTTLE WASHING AND DRYING MACHINES
1. Amstrong Smith Limited, 106, Armenian Street, Madras -1.
2. Kiv Group Industries, Sunmill Compound, Lower Parel, Mumbai –
400 013.
3. Kripson and Company (I), Ranade Road, Mumbai – 400 028.
4. Larson and Toubro Limited, L & T House, N. Morarji Marg, Balladr
Estate, Mumbai – 400 001.
CAP SCREWING MACHINES
1. Amstrong Smith Limited, 106, Armenian Street, Madras – 1.
2. Kiv Group Industries, Sunmill Compound, Lower Parel, Mumbai –
400 013. 3. Rank and Company, A-95/2A, Wazirpur Industrial Estate, Delhi – 110
052.
BOTTLE FILLING MACHINES
1. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder,
Mumbai – 400 039.
2. Kiv Group Industries, Sunmill Compound, Lower Parel, Mumbai –
400 013.
3. Kripson and Company (I), Ranade Road, Mumbai – 400 028.
4. Rank and Company, A-95/2A, Wazirpur Industrial Estate, Delhi – 110
052.
COLLAPSIBLE TUBE FILLING MACHINES
1. Larson and Toubro Limited, L & T House, N. Morarji Marg, Balladr
Estate, Mumbai – 400 001.
2. Rank and Company, A-95/2A, Wazirpur Industrial Estate, Delhi – 110
052.
EMULSIFIERS AND STIRRERS
1. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder, Mumbai – 400 039.
2. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai – 400 007.
3. Frederick Herbert, No. 10, 2nd Pasta Lane, Colaba, Mumbai – 400 005.
4. Gladwyn & Co., 251, Naoroji Road, Fort, Mumbai – 400 001.
FILTER PRESSES
1. Basp Industries, G.P. Industrial Area Complex, Thane.
2. Dashmesh Industries (India), WZ-470, M.S. Block, Hari Nagar,  New Delhi 110 064.
3. H.S. Engineering Works, 16/17, Singh Sabha, Guruduara, New Delhi – 110 015.
4. R.P. Engineering Company, 7/8, Gali No.7, Anand Parbat, New Delhi 110 005.
GLASS BOTTLES CONTAINERS
1. Sun India Printing,B-193, Okhla Industrial Area, Phase-1, New Delhi- 110 020.
2. Universal Glasses, Plot No.17, Site No.IV, Industrial Area,
Sahibabad, Ghaziabad.
GRINDING MACHINES
1. Hindustan Metal Works, 17-B, Bhayandar Udyog Nagar, 9-Goddeo Road, Bhayandar, Thane.
2. Yesco (India) Engineering Co., 21-A, Naraina Indl. Area, Phase-II, New Delhi – 110 028.
3. Water Well Engineers, 20/76, S. Bhagatsingh Road, Mumbai.
4. Tirupati Industries, 8, Nand Deep Indl. Estate,  Kondivitta Road, Mumbai   – 400 059.
LABEL GUMMING AND APPLYING MACHINES
1. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder,
Mumbai – 400 039.
MARKING AND PRINTING MACHINES
1. Modern Industries, Factory Plot No.98, Sector No.24, Faridabad – 5.
MIXERS (PLANETARY MIXER) AND OTHER CHEMICAL MACHINERY
1. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai – 400 007.
2. Process Machinery and Equipments, 144, Ashutosh Mukerjee Road, Flat No.7, Kolkata – 25.
3. Frederick Herbert, No.10, 2nd Pasta Lane, Colaba, Mumbai – 400 005.
PASTE FILLING AND CRUMPING MACHINES
1. Mather and Platt Limited, Hamilton House, 8, Graham Road, Ballard Estate, Mumbai – 400 001.
POWER FILLING MACHINES
1. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai – 400 007.
2. Macneill and Barry Limited, 2, Fairlie Place, Kolkat – 1.
3. Gladwyn & Company, 251, Naoroji Road, Fort, Mumbai – 400 001.
4. Frederick Herbert, No.10, 2nd Pasta Lane, Colaba, Mumbai – 400 005.
PULVERISING MACHINES
1. Batliboi Private Limited, Silver Jubilee Park Road, Bangalore – 2.
2. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai – 400 007.
3. Mechanico, 15, Okhla Industrial Estate, New Delhi – 110 020.
RIBBON BLENDERS
1. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai – 400 007.
2. Macneill and Barry Limited, 2, Fairlie Place, Kolkat – 1.
3. Crush Machinery Manufacturers, 3rd Floor, 361, Dr. D.N. Road, Fort, Mumbai – 400 001.
SCIENTIFIC APPARATUS AND LAB EQUIPMENT
1. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder, Mumbai – 400 039.
2. Toshniwal Brothers Private Limited, 198, Jamshedji Tata Road, Mumbai – 400 001.
3. Valcun-Lavel Limited, Mustafa Building, 7-A, Sir P.M. Road, Mumbai – 400 001.
LIST OF MACHINERY SUPPLIERS AND PRODUCTION OF 
COSMETIC PRODUCTS
   
1. Mamko Machine Fabricators Pvt. Ltd., 105, Heera Panna Indl. Estate,
Goregaon (E), Mumbai – 400 063.
2. Square Pharma Machineries, Unit No.33, Arihant Indl. Estate,Behind
Ansa Estate, Off. Saki Vihar Road, Mumbai – 400 072.
LIST OF RAW MATERIAL SUPPLIERS AND PRODUCTION OF 
COSMETIC PRODUCTS 
1. Galaxy surfactants Limited, C-49/2, TTC Indl. Area, Pawane, Navi Mumbai – 400 703.
2. Chemhouse Marketing, 42, 1stFloor, Asiatic Commercial Arcade, Vartak Nagar, Pokhran Road, Thane (W) – 400 606.
3. International Flavours and Fragrances (I) Ltd.,  Delphi 501-503, C Wing, Hiranandani Business Park, Powal, Mumbai – 400 076.
4. Yasham Bio-Science, 3B Nityanand Sadan, Bharadawadi, Andheri
(W), Mumbai – 400 058.
5. WF Limited, 109 Sion (East), Mumbai – 400 022.
6. Stan-Pack Industries, B/5, Mahalaxmi Industrial, Navghar, Vasai
Road (E), 401210, Dist. Thane.
7. Arofine Chemical Industries, 2/11, Arondekar Bhavan, 14 HF Society
Road, Jogeshwari (E), Mumbai – 400 076.
8. Yasham Bioscience, 3/8, Nityanand Sadn, Bhardawadi JP Road,
Andheri (W), Mumbai – 400 058.
9. Alpha Plastic Industries, Gala No.1, Navnandan Indl. Estate, Opp
P&T Colony, Mulund (W), Mumbai – 400 080.
10. Koel Colours Pvt. Ltd., F-11, Nand-Jyot Ind. Premises, Andheri-Kurla
Road, Safed Pool, Sakinaka, Andheri (E), Mumbai – 400 072.
11. Ultra International Limited, 304, AVG Bhawan, M-3, Connaught
Circus, New Delhi – 110 001.
12. Lucid Colloids Limited, 401A, Navbharat Estates, Zakaria Bunder
Road, Sewri West, Mumbai – 400 015.
13. Vivimed Labs Limited, 2nd Floor, Veerang Towers,Habsiguda, Hyderabad – 500 006.
14. RYM Expoorts, 23, Anuradha Society, Old Nagardas Road, Andheri
(E), Mumbai – 400 069.
15. Sankhubaba International, 425 Milan Industrial Estate, Opp. T.J Road,
Cotton Green (West), Mumbai – 400 033. 16. Gujarat Heavy Chemicals, 20 Community Centre, New Friends Colony, New Delhi – 110 065.
17. Evancil Cosmetics, 6/9, Kirthi Nagar, Ind. Area,New Delhi – 110 005.
18. JBT Perfumes (P) Ltd., 9/405 Laxmi Plaza, Link Road, Andheri (W), Mumbai – 400 053.
19. Anglo American Colour and Chemical Industries,  A-40, Gali No.6,
Anand Parbat Indl. Area, New Delhi – 110 005.
20. Oriental Carbon and Chemicals Limited, 5th Floor, 506, Dahyog
Building, 58, Nehru Place, New Delhi – 110 001.
21. Wesix Chemicals, Marshal Building, 3rd Floor, 20, Ballard Road, Mumbai – 400 038.