ProjectProfile

Product

Herbal Hair Oil

Product code

314601007

Quality Standard

IS: 7123:1993
IS: 7123:1993

Production Capacity (Per

Annum)
Quantity

59.70 MT

. Value

Rs. 59,70,000.

Month and year of

Preparation

March , 2011

Prepared By

Chemical Division
MSMEDI Opp Okhla Industrial Estate,
Okhla, New Delhi-20
Phone No-6838118
6838068
6838269
Fax No. 6838016

Herbal Hair Oil

I.

Introduction

Herbal hair oil mainly comprises of oils of vegetable in

origin as base and a suitable blended perfume.
Vegetable oils
commonly used are coconut, caster and seasome oils. To avoid
rancidity of hair oils antioxidants are added in very little quantities.
Perfumes used for preparation of hair oils should not fugitive and
to prevent this they are usually fixed by sandal wood oils or other
fixatives.
The hair oils may be coloured by the use of oil saluble colours.
Care should be taken that the dyes used should not be injurious to
health.
Now a days people have special attraction for use of herbal
hair oil. The ingredients used in herbal hair oil are Amala dry fruits,
Mehandi leaves, Brahmi Plant, Lemon oil. Harar dry fruits, Bahera dry
fruits, kapurkachari rhizome , Almond oil etc. The ingredient are used
from 0.01 to 1%.
The ingredients used are either single or in
combinations of two or three or more of the above, as per the
consumers requirement. Viz- Amla Hair oil or Brahmi- Amla Hair Oil or
Almonds hair oil etc. The base of oils remains same.
II

MARKET POTENTIAL
Cosmetic Industry is registering a growth of 15%. Indian
Herbal cosmetic products are always in demand although there is
a tough competition in this line but there exists a gap between
demand and supply for the quality products. Now a-days people
are very crazy for the herbal products in attractive packs have
good demands.

III

PRODUCTION TARGETES ( PER ANNUM)

Quantity :
Value :

59.70 MT
Rs. 59,70,000

2
IV

BASIS AND PRESUMPTION:

1.

The production capacity is calculated on single shift basis at 70%

efficiency and 300 working days in a year.

2..

The rate of interest in this project profile has been calculated

16% per annum on total capital investment. However, this figure
is likely to vary depending on the financial outlay of the project
as well as location of the unit.

3.
The break even point has been calculated on the full capacity
utilization.
4.

The cost of machinery and equipment as indicated refer to a

particular make and prices are approximate those prevailing at
the time of preparation of project profile. Similarly the rent of
land and building indicated in the profile relates to a particular
place and should be updated depending upon place of
implementation.

5.

The cost of installation and electrification is taken at the rate of

10% of the cost of machinery and equipments.

6.

Pay back period 5 years from second year of operation.

V. PROCESS OF MANUFACTURE:
The process of herbal hair oil manufacturing involves following
steps:
1.

MIXING :

In this step all the ingredients like base oil, herbal

extract/oils, perfumes and colours are mixed in the desired
proportions in mixing tank using slow speed stirrer for 15-20
Minutes and then allowed to settle for two to three hrs.
2.

FILTERATION :

The oils is now filtered through filter press

3.

INSPECTION/TESTING :

Filtered oil is sent to laboratory for necessary testing.

3
4.

BOTTELING AND LABELLING :

After passing through required inspection, oil is now filled in

cleaned and dried bottles in required volumes and then sealed
and leveled.
5.

PACKGING :

Bottles are now packed in corrugated boxes for marketing.

Process flow chart is as under:

PROCESS FLOW CHART

Base Oil

Herbal extract Oil

Mixing

Filtration

Inspection

Bottling & leveling

Packaging
Marketing

Colour

VI.

QUALITY STANDARDS

The quality of
Herbal Hair Oil depends upon the market
requirement there is no separate Indian Standard for manufacturing of
Herbal Hair Oil. Entrepreneurs are suggested to contact drug controller
in this matter. And also advised to appoint an approved / qualified
chemist for regular testing & quality control.
VII

POLLUTION CONTROL

The manufacturing process of herbal hair oil does not attract

pollution control measures, however, it is advised to consult State
Pollution Control Board and follow the guidelines offered by them.
VIII.

ENERGY CONSERVATION :

Machinery & equipments purchased should be as per relevant

standard
Regular maintenance of machinerys is required.
IX

MOTIVE POWER
5 HP
Land & Shed

Land
Shed

Rented

&

Rs.10,000

MACHNERY & EQUIPMENT

1
2
.
3

Mixing tank with stirrer 01

capacity 200 kg,
Constant filling machine 01
( two headed )
Cap Sealing machine
01

Filtering equipment

Testing & other

miscellaneous equipment
Cost of office equipment

Rs. 4,00,000

01

Rs. 20,000

7 Installation & Electronic

Rs. 50,000
. Charges @ 10%
Total Non Recurring cost Rs. 4,70,,000
5
XI

STAFF & LABOUR ( PER MONTH)

S.No. Designation
1
2
3
4

Nos
.
01

Manager Cum
Chemist
Clerk cum
01
Accountant
Sales Representative 02
Workers
04
Total
Perquisites @ 15% of
total Salaries

Salary

Total Rs.

6,000

6,000

4,000

4,000

4,000
3000

8,000
12,000
30,000
4,500
34,500

XII

RAW MATERIALS PER MONTH

S.No
.
1

Particulars

2
3

Soyabeen oil
900 Kg.
Other Herbal oils / 90Kg.
Perfumes
Colour
10Kg.
Packaging
material

4
5

Coconut oil

Quantity Rate
(Rs.)
4000Kg. 60
60
800
600

Amount
(Rs.)
2,40,00
0
54,200
72,000
6,000
10,000
3,82,00
0

XIII

UTILITIES PER MONTH

1.
2.

XIV

Electricity charges
Water charges
Total

Rs.5,000
Rs.1,000
Rs.6,000

OTHER EXPENSES ( PER MONTH)

1.
2.
3.
4.

Postage & Stationery

Telephone
Repair & maintenance
Other unforeseen

Rs 0500
Rs.2,000
Rs.2,000
Rs.2,000

Total

Rs.6,500

6
XV

WORKING CAPITAL ( PER MONTH) 4,29,000

XVI

TOTAL CAPITAL INVERTMENT

1.

Total fixed capital

2.

Working
months
Total

capital

Rs. 4,70,000
for3 Rs 12,87,000
Rs.17,57,000

XVII. COST OF PRODUCTION (PER YEAR)

1.
2.
3.

Total Recurring Cost

Rs.51,48,000
Depreciation
on Rs.42,000
machinery & equipment
@ 10%
Interest on total capital @ Rs.2,81,120
16%
Say Rs.
Rs.54,71,120

XVIII. TOTAL SALES ( PER YEAR)

Annual production of oil

@ Rs. 100/Kg ( in 100 ml,
300ml & 500ml Bottles )
XIX. PROFIT PER ANNUM :

XX.

59.7
0MT

Rs.59,70,000

4,99,000

PROTITABILITES

% Return on Total Capital Investment: 28.4%

% Profit on Sales
XXX

8.3%

BREAK- EVEN ANALYSIS : FCx 100/FC+Profit

31%

XXII. NAME & ADDRESSES OF MACHINERIES SUPPLIERS:

M/S T.S. ENTERPRIES

Road No.14 ,Plot No.E-412
Vishwakarma Indstrial Area, Jaipur
M/s Danyal Engineering Company
3022 ,Gali Nal Bandan Shahgang
Ajmere Gate ,Delhi-6
M/s Sehgal Industrial Works
T-1698 ,Malkaganj
Subji Mandi ,Delhi-7
M/S Rank & Company
A-95/3 Wazirpur Industrial Area
New delhi-52.
XXIII,NAME & ADDRESSES OF RAW MATERIAL SUPPLIERS:
M/S Amrit Lal Burabhai & Company
Anand Bhawan Shamadas Gandhi Marg
Princess Street ,Mumbai-2
M/S Suresh Chandra & Company
48 Princess Street ,Mumbai-2