Shampoo Production

ASIAN INSTITUTE OF TECHNOLOGY
SCHOOL OF ENVIRONMENT, RESOURCES AND DEVELOPMENT

ENVIRONMENTAL ENGINEERING AND MANAGEMENT PROGRAM
Term Paper II
Shampoo Production
Course: ED 78.20 Industrial Waste Abatement and Management
Instructor:
Prof. C. Visvanathan
Prepared by:
Mr. Oukham
Phounpakone
ID.104319
Ms. Lalitcha
Imchuensri
ID.104480
Ms. Jarussaeng
Molen
ID.104509
Mr. Bidur
Dahal
ID.104539
Mr. Artid
Prakitcharoensuk ID.104689
Mr. Pradeep
Munasinghe
ID.104713
Ms. Cao Thi Van Hau
ID.104771
Mr. Seng
ID.104748
Date of submission: 26 April, 2007
Bunrith
TableofContents
1
3.
Introduction
1.1
Background
1.2
Cosmetic Market in Thailand
1.3
Types of Cosmetics
1.3.1
Shampoo
1.3.2
The Worldwide Market Potential of Shampoo
1.3.3
Asia Market
1.3.4
Thailand
Shampoo production process
2.1
Raw materials
2.2
Processing
Waste Treatment Practices

3.1
Wastewater
6
6
3.1.1
Pretreatment
3.1.2
Primary Treatment
3.1.3
Secondary Treatment
3.1.4
Tertiary Treatment
3.2
Air pollution
3.3
Solid Waste
3.4
Noise Pollution
Environmental issues related to shampoo production
Cleaner Production
10
Pollution Norms
10
7.
Case study Unilever Thai Holding Ltd.
11
7.1
Introduction
11
7.2
Shampoo process
11
7.3
Wastewater management
12
7.4
Solid waste management
14
7.4.1
Type of solid waste
14
7.4.2
Waste management
14
7.4.3
Waste collection
14
Appendix A-F
NurtureShampooManufacturingCo.,Ltd
Introduction
1.1
Background
Pa g e | 1
The word cosmetics comes from the Greek word kosmetikos meaning skilled in
adornment/decoration. The way people wear makeup and the reasons why they wear it
have changed dramatically over time and through different cultures. It is believed that
cosmetics have been used as early as Egypt circa 4000 BC to fulfill beautifying needs.
According to some sources numerous forms of cosmetics were extracted from the fertile
land of the Nile River. The shepherds and hunters of the Mesolithic Period would often
smear their bodies with locally made cosmetic products.
1.2
Cosmetic Market in Thailand
The cosmetics industry is one of the fastest growing sectors in Thailand. The year 1997 saw
the fastest growth period in the cosmetic industry, with a growth rate of 20 percent.
Although the economic crisis has had a negative impact on consumption levels, results
during 1999-2000 show that the cosmetics industrys growth rate was at 15 percent.
Thailands exports of cosmetic products increased by 72 percent in 2003 compared to a
year before. The cosmetics market was expected to grow at an average of 18 percent in
2004, due mainly to Thailand's positive economic situation and expected positive GDP
growth.
In 2005 cosmetics and toiletries in Thailand continued to record strong growth increasing
by 7% of the previous year. The main factor behind growth of the market was increasing
retail prices caused by an increase in energy prices and a change in consumer behavior in
favor of expensive products. The most dynamic performances in 2005 were seen in skin
care, fragrances and men's grooming products. On the other hand, growth in areas such as
bath and shower products, hair care and oral hygiene was significantly lower as these
products had already achieved widespread penetration.
Imported cosmetic products accounted for approximately 24 percent of the total market.
Major countries of origin included Belgium, France, Germany, Japan, the United Kingdom,
Italy, China and the United States.
As of 2003, there were 800 manufacturers of cosmetic products listed with the Industrial
Works Department of the Thai Ministry of Industry. Approximately 70 percent of them are
clustered in the Bangkok metropolitan area. Thailand is a major producer and exporter of
shampoo products, which accounted for 40 percent of the total export value of cosmetic
products in 2003.
1.3
Types of Cosmetics
Today the cosmetic products range from simple skin creams, soaps and shampoos to
special lotions, base creams, moisturizers, nourishers, cleansers, protectors, rejuvenators
and conditioners for body, face, hands, eyes, lips, mouth, hair, nails and so on.
1.3.1
Shampoo
Shampoo is a common hair care product used for the removal of oils, dirt, skin particles,
environmental pollutants and other contaminant particles that gradually build up in hair
(without stripping out).Shampoo, when lathered with water, is a surfactant (surface active
Instructor:Prof.C.Visvanathan
ED78.20:IndustrialWasteAbatement&Management
EnviromentalEngineeringandManagement,AIT
P a g e | 2
agents, i.e., wetting agent). Shampooing is frequently followed by conditioners which

increase the ease of combing and styling.
1.3.2
The Worldwide Market Potential of Shampoo
The latent demand (or potential industry It shows the top 3 regions cover come 87
percent of the global latent demand for hair
earnings) for hair care shampoo was
estimated to be $7.4 billion in 2005. The care shampoo
distribution of the world potential industry Table 1: Worldwide Market Potential for
earnings, however, is not evenly distributed
Hair Care Shampoo (US $ mln): 2005
across regions. 2005 data shows that Asia is
Latent
the largest market with $2.4 billion or 33
% of
Demand
Region
percent, followed by Europe & the Middle
Globe
US $ mln
East with $2.2 billion or 29 percent, and
2,360
33
then North America & the Caribbean Asia
with$1.9 billion or 25 percent of the world Europe & the Middle
2,163
29
market.
East
601
8%
North America & the

Caribbean
2,360
33%
1,862
25%
289
4%
93
1%
2,163
29%
1,862
25
Latin America
601
08
Africa
289
04
Oceana
93
01
7,368
100.0
Total
Source: Philip M. Parker, INSEAD, 2005

www.icongrouponline.com
Asia
Africa
Europe & Middle East
Oceana
North America & Caribbean
Latin America
Figure 1: Worldwide market potential (US $ mln: 2005)
World Market Trend (2000-2010)
W o rl d m a rk e t [U S $ b i l l io n ]
The world market for hair care shampoo some other reasons for its continued
had steadily declined from the period growth.
between 2002 and 2004 as these products
had
already
achieved
widespread
8.2
penetration. However, it showed positive
8.0
growth after 2005. The main factor behind
growth of the market was increasing retail
7.8
prices caused by an increase in energy
7.6
prices and a change in consumer behavior
in favor of expensive products. Increase in
7.4
demand
by
growing
population,
7.2
widespread commercial advertisement of
2000
2002
2004
2006
2008
2010
the hair care products, change in life style
year
due to improved quality of life in major
regions like China and India, etc were
Figure 2: World market trend
2012
1.3.3
Pa g e | 3
Asia Market
In case of Asia, three most populated countries China, India and Japan have a bigger
share of the product. 2005 data shows that China is the largest market with $796.18
million or almost 34 percent, followed by Japan with $539.3 million or 22.85 percent,
and then India with $385.47 million or 16.33 percent of the Asian market. It shows that
the top 3 regions cover 73 percent of the Asian potential demand for hair care shampoo.
The other top three nations with one digit percentage share of Asian market of the
product include South Korea, Indonesia and Thailand with approximately six percent,
five percent and three percent respectively (Detail data in Appendix A). It has also been
observed that the market of hair care shampoo shows a similar fashion as that of world
market with a slight decline till 2004 from 2000 and then increase steadily after that.
N
No ep
rt h al
Ko
re
a
Ca
m
bo
di
a
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pa
n
I
n
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di
a
ut
h
Ko
re
In
do a
ne
sia
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ai
lan
d
Ta
i
Ph wa
ilip n
pi
ne
s
M
al
ay
Ba
s
ng ia
la
de
Ho sh
ng
Ko
ng
Vi
et
na
m
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ga
po
re
Bu
rm
a
Sr
iL
an
ka
40
35
30
25
20
15
10
5
0
Ch
in
a
Percent (US $ mln)
Market Potential for Hair Care Shampoo in Asia:2005
Countries
Figure 3: Comparison of shampoo market in Asia

1.3.4
Thailand
Thailand is also a major player of hair care shampoo market contributing around one
percent of the total global market share. Asia contributes about 33 percent of total world
shampoo market where Thailand contributes three percent of the market share. The
shampoo market is almost steady for the last few years in Thailand. It has been
predicted that the market would continue to grow in the similar fashion for next five
years, i.e. till 2010. Bangkok city, world rank 14 in hair care market, alone contributes
about 94 percent of the Thai shampoo market share whereas the city contributes 2.83
percent in the Asia region and 0.91 percent of the world market share (Appendix B).
Shampoo production process
2.1
Raw materials
Hair shampoos are highly formulated products based on a limited range of cosmetically
acceptable surface active agents, plus conditioning agents, pearling agents,
antimicrobials agents, colours and fragrance. Shampoo ingredients must be
biodegradable as other body care products to minimize health effects. Each ingredient
has specific functions and roles in shampoos. Following points given below are some of
P a g e | 4
the main components of shampoos along with their characteristics. However, the
description of shampoo ingredients is given in details in Appendix C.
Surfactants, including five categories (primary anionic - basic, secondary

anionic - mild, amphoteric, cationic and nonionic), serve as foamers and
detergents which are easy to soluble in water.
Thickeners and foam stabilizers remain viscous to avoid precipitation and

stability against hydrolysis at higher temperature or extreme pH. They can be
polymers, natural gums or cellulose derivatives.
Conditioning agents make hair easy to comb after drying. Since conditioners are
effective than shampoo, very low concentrations (0.5% by weight) are sufficient.
Conditioners are normally fatty components such as fatty alcohol,
monoglyceride, vegetable oils, lanolin, herbal extracts and silicon.
Shampoos can be made in various physical forms such as liquids, creams, paste, aerosol
and dry. Liquid shampoos are common, either clear or opaque (pearlised), containing
2040% solids, adjusted to approximately pH 5.5 and viscosities in the ratio of 500
1500 centipoise.
Composition of shampoos can be modified for special application. Medicated shampoos
generally use similar ingredients and added specific medicant. For instance, dandruff
shampoos contain fungicides such as zinc pyrithione and selenium sulfide which reduce
loose dander by killing Malassezia furfur. Shampoos for infants are formulated with
particular emphasis on minimal eye irritancy and skin mildness. A limited range of
proprietary ingredients are used to meet these needs. Totally different from hair care
products for human, shampoo for animals may contain insecticides or other medications
for treatment of skin conditions or parasite infestations such as fleas or mange.
2.2
Processing
Shampoos are manufactured by simple blending in a stirred vessel. Sometimes a

moderate amount of heat is used to reduce the viscosity and so facilitate ease of mixing
therefore vessels are equipped with low pressure steam heating coils. Vessels are
typically constructed from stainless steel, although glass-lined vessels are still used in
some processes.
Ingredients are weighed or metered incrementally into the mixing vessel, with thorough
mixing between each addition. Dispersed and emulsified mixes are achieved by means
of the central rapid speed movement. Some pearlising agents are waxy solids at ambient
temperature and require melting in a drum oven or similar before use.
Demineralized water is most commonly used in order to minimize contamination of the
product. In cosmetic industry, reverse osmosis membranes play a role in production of
demineralized water. These membranes act as a molecular filter to remove 95 to 99% of
dissolved salts and inorganic molecules, as well as organic molecules with a molecular
weight greater than 100. The reverse osmosis membrane also removes more than 98%
of residual biological and colloidal matter from the feed water.
P a g e | 5
No further processing is required after blending, and the product may be packed off
directly from the mixing vessel by filling system which composes of auto-bottle settling
machine, bottle-washing machine, filling machine, lid-revolving, label-attaching and
aluminum foil clapper.
In some segments of the industry, one manufacturer may produce a shampoo base
which is sold to, and further processed by, the formulator. Typically, this second level
processing will involve only the addition of water, color and fragrance. Proprietary
and/or therapeutic ingredients may also be added at this stage (Appendix D).
Washing water 60 m3/day
Chemicals 21.6 tons/day
Process
Deionized water 23.3 m3/day
Product 43.5 m3/day
Losses 0.73 tons/day
Note:
Shampoo density : 1020 kg/m3
Wastewater 59.8 m3/day
Figure 4- Mass balance diagram for shampoo production

Inputs:
- Chemicals
- Deionized water
- Washing water
- Inputs
Outputs:
- Product
- Waste water
- Outputs
Material balance:
Inputs
104.9 tons/day
Losses
Percentage losses
= 21.6 tons/day
= 23.3 m3/day x 1 tons/m3 = 23.3 tons/day
= 60 m3/day x 1 tons/m3 = 60 tons/day
= 21.6 + 23.3 + 60 = 104.9 tons/day
= 43.5 m3/day x 1.02 tons/m3 = 44.37 tons/day
= 59.8 m3/day x 1 tons/m3 = 59.8 tons/day
= 44.37 + 59.8 = 104.17 tons/day
= Outputs + Losses
= 104.17 tons/day + Losses
= 0.73 tons/day
= 0.73/104.9 = 0.7%
P a g e | 6
3. Waste Treatment Practices

Nurture Shampoo Manufacturing produces only hair care shampoo with the capacity of
44m3/day. As this factory is small, it produces fewer amounts of pollution, wastewater,
solid waste, air pollution, and noise pollution.
In order to meet the Thai standard of wastewater effluent discharge, wastewater
treatment plant was implemented. Wastewater is collected and mixed together from
washing operation, cleaning, laboratory experiment, and domestic wastewater
(Appendix D).
Air pollution is one of the problems found in this factory but it is not a big problem
because fewer amounts of gas emission, NOx, SOx, dust and soot, and aerosol, is
emitted to the atmosphere. All gases coming from the factory are treated by using wet
scrubbers and bag house filters.
Solid waste is another pollution factor in the factory. Most of the solid wastes are
plastics, cardboards, bottles, and food waste and yard waste. The recycled materials
such as plastic, bottle and cardboard are sold to recycling shop, and food waste and yard
waste are collected by municipal solid waste collectors.
Beside these three main pollutions, noise pollution is also found within the factory.
Noise almost comes from blending machine and filling machine. This problem is solved
by putting these processes in a closed room and all workers have to use ear plugs or ear
mufflers.
Table 2- Wastewater Characteristic
Parameters
BOD
COD
TDS
TSS
Alkalinity
Oil and Grease
pH
Total N
Total P
Color
Temperature
3.1
Unit
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L of pt
o
C
Concentration
350
700
3000
650
200
120
10
50
9
700
29
Wastewater
Wastewater refers to the water discharged after use which contains the characteristics as
shown in table 2. Wastewater treatment plant consists of primary treatment, secondary
treatment, and tertiary treatment (Appendix E). Moreover, sludge dewatering and
disposal is also implemented.
3.1.1
P a g e | 7
Pretreatment
Coarse solid such as plastic, cardboard, paper must be removed from the waste effluents
to reduce abrasion and prevent damage to pumps, piping and sludge dewatering
equipment. For the wastewater of this shampoo factory, mechanical bar screens and
Equalization & Neutralization are used for the operation. Equalization & Neutralization
play an important role of storing wastewater coming from the processes in batch
operation and adjusting the pH between 6.5 and 8.0 to prevent disturbance in secondary
biological treatment systems.
3.1.2
Primary Treatment
The main objective of primary treatment in the factory is to remove the settleable
portion of SS and oil & grease. Floatation process is used to separate solid or liquid
particle and to concentrate biosolids. Among the three unit operations - dissolved air
floatation, dispersed air floatation, cavitations floatation - dissolved air floatation is used
which consists of dissolved air under a pressure of several atmospheres introduced at
the bottom of the tank, scrapper at the bottom and skimmer at the top of the tank to
collect all settleable solid and to remove all the floating matter (oil and grease).
3.1.3
Secondary Treatment
Secondary treatment is designed to remove BOD associated with dissolved organic

material in the effluent and normally uses biological processes. The biological treatment
process can convert much of the dissolved organic material in effluent to water, CO2 or
organic suspended solids and expected BOD removal is 70-95%.
Suspended growth biological treatment process is used here to treat the wastewater. The
process consists of the following three components: (1) a reactor in which the
microorganisms responsible for treatment are kept in suspension and aerated; (2) liquidsolid separation, usually in a sedimentation tank; and (3) a recycle system for returning
solids removed from the liquid-solids separation unit back to the reactor. The excess
sludge from the secondary sedimentation tank is collected to sludge thickener in order
to increase the solid content for dewatering process.
3.1.4
Tertiary Treatment
The components remaining after primary and secondary treatment are residual SS,
residual BOD, Color and some other trace elements. Tertiary treatment designed to
remove these components is activated carbon adsorption. The main purpose of using the
activated carbon adsorption is to remove the color of the effluent treated water for
reusing to the cooling tower, fire fighting, floor washing, gardening, road cleaning, and
GAC back washing.
3.2
Air pollution
Nurture Shampoo factory is a small manufacturer which is equipped with all modern
facilities and new technologies. Therefore, air pollution is not a big problem in this
factory. However, air pollution is found from the boiler, by using heavy oil, and
weighting room. The pollution control devices are shown in Table 3.
P a g e | 8
Table 3- EOP Technologies for the Air Pollution Abatement

Processes
Air Pollution Control Device
Raw material preparation (Dust) Dust collection system (bag house filter)
Utilities (Boiler)
3.3
Wet Scrubbers
Solid Waste
In the process of making shampoo, it will not have large quantity of solid waste. Mainly
we have paper, cardboard and plastic from production process and the office and food
waste from the canteen and yard waste from cleaning the garden. Paper, plastic and
cardboard will separate from the waste and sell for recycling. The other solid wastes
will be collected by the municipal solid waste collection system (Table 4).
Table 4- Solid waste generation
Source
Waste
Unit
Quantity
Management
Office
Paper and Plastic
Kg/day
10
Recycle shop
Operation
Cardboard and
plastic
Kg/day
40
Recycle shop
Canteen
Food waste
Kg/day
65
Municipal collection
system
Garden
cleaning
Yard waste
Kg/day
Municipal collection
system
3.4
Noise Pollution
Mainly in Shampoo production process, noise is produced by dissolve tanks, boilers,

mixers and filling machines. This is not a big environmental issue. But if we consider
the cosmetic industry where we have size reduction processes will produce much more
noise than the shampoo production alone.
In our industry we have separated sound proof rooms to keep these units and for the
workers we will provide personal protective equipments like ear plugs and mufflers.
Environmental issues related to shampoo production
No by-products are produced during the shampoo manufacturing process. Washing out
the blending vessel and other washing purposes will produce an effluent which will
contain some shampoo. Since all reputable manufacturers of these products use fully
biodegradable surface active agents, we use biological treatment process after removing
oil and grease.
P a g e | 9
Treated water using newest inventions like titanium micro-dispersion water

technology can be used for various cosmetic materials instead of normal demineralized
water. This method produces high-function cosmetic materials offering the efficacies of
active ingredients contained in the cosmetic material as well as the effects of titanium
micro-dispersion water. But in our process we are using deionized water as the solvent
media.Following are some of the Environmental Issues we found out in Shampoo
manufacturing industry.
Air pollution: Mainly in shampoo production process we have air pollution due to NOx,
SOx, and particulate matter and vapor. NOx is produced from the furnace and SOx and
vapor from the fuel which is used to heat the boiler. Dust and soot is produced in the
mixing units and the packaging area.
NOx and other emissions from the furnace will be absorbed by the packed tower which
is connected to the furnace whereas we have implemented SOx reduction technologies
like Dry Flue Gas Desulfurization Processes (FDG).
In the manufacturing process of shampoo we experience odor problems due to the
chemicals which we use in the production process. We can not eliminate the odor
problem and we use a dilution method as these odors are non toxic. In our industry we
provided more ventilation for the areas where we have these production units and for
workers we provide personal protective equipments like dust masks and respirators.
Noise pollution: As mentioned earlier, noise is produced from dissolve tanks, boilers,
mixers and filling machines. Noise pollution may be significant if we consider cosmetic
industry as a whole.
Water pollution: The major pollution source is the waste water coming from the
production process. It contains lot of colloidal particles and the spilling of the raw
materials. Floor cleaning waste water also comes to the wastewater treatment plant. We
try to minimize the wastewater amount generate in the production process by
implementing CIP (Clean in Place) as much as possible. As a newly constructed
industry our machines like mixers and filling units we have this technology. We will not
be going to reuse the raw materials which are coming as waste.
In wastewater TDS content is considerably high, because we have lot of colloidal
particles in the wastewater. In general Cosmetic industries contain high TDS values.
And also the incoming wastewater contains lot of forms. When we adjust the pH of the
incoming wastewater in the equalization tank, we can make this issue to minimum.
Adjusting the pH is a must in our treatment process because we are going to use
biological treatment process to remove BOD. Waste water coming out of the production
process will have a higher pH value because we use some basic solutions as our raw
materials. (Eg. Caustic)
Solid wastes: We do not get large quantity of solid waste from the process. Mainly we
have paper, cardboard and plastic from production process and the office whereas food
waste from the canteen and yard waste from cleaning the garden. Paper, plastic and
cardboard will be separated and sold for recycling. The other solid wastes will be
collected by the municipal solid waste collection system.
P a g e | 10
5 Cleaner Production
Cleaner production is the main tool to reduce the pollution from industries which
applies integrated preventive strategies to processes, products and services to increase
economic efficiency and to reduce risks to humans and environment.
Cleaner production means economic savings from reduced consumption of raw
materials and energy, and lower treatment costs, as well as other benefits such as a
better company image and better working conditions. Implement cleaner production
may not solve all environmental problems at a facility, but it will decrease the need for
installing and operating end of pipe treatment equipment and reduce the quantity of
hazardous waste that must be treated and disposed of.
Following are some of the aspects addressed as cleaner production approaches.
Process modification: When environmental issues becomes more important, shampoo
manufacturers care about non-polluting materials such as organic ingredients (saponin
extracted from pods of Acacia aulucumiformis), biodegradable bottles. Shampoo bottles
made from beet extracts that biodegrade in compost pile, or fabrics that break down in
soil safely, without any toxic by-products.
As a new industry we have the best available technology in the present days. Most of
the machines are run by computer softwares which will give accurate measurements on
batching and mixing of ingredients. This will lead to optimum raw material usage.
Recycling: In the boiler water will be recycled and use it back. We need to supply what
ever the amount we loose due to evaporation losses. For the Cooling tower we plan to
use the treated effluent. And that will be used in floor cleaning, fire fighting, road
cleaning and gardening purposes.
Dust Control: Dust and soot can be controlled using bag filters or wet scrubbers.
Unloading the raw material will be one of the dust generating points. By directly
unloading the raw material in to the storage silos will reduce the dust generation.
Noise reduction: Even though this is not a big issue in Shampoo production, we have a
plan to do regular checking of noise generated by the machine units. We will maintain
the machines according to the guidelines provided in Occupational Safety and Health
Administration (OSHA) specification.
Raw Material quality will also be monitored and changed accordingly to achieve
optimum conditions.
Solid waste management: Segregation of solid waste will be promoted as an essential
part of the process. Especially plastic, paper and cardboard will be separated from other
solid wastes and sell to the recycling shop. Plastic bottles from the quality assurance
unit will be washed and reused.
6 Pollution Norms
Pollution norm is used to compare the pollution loading from the actual practice to the
standard or guideline. For shampoo production, there is no specific pollution norm in
P a g e | 11
the WHO guideline. Therefore, we compare the pollution load of our production with
some of the soap production processes given in WHO guideline as shown in table 5.
Table 5- Typical Pollution Norms for Soap Production
Unit
[U]
Waste
Volume
[m3/U]
BOD5
[kg/U]
TSS
[kg/U]
Oil
[kg/U]
Soap from kettle

boiling
tn product
4.5
0.9
Liquid Soap
tn anhydr
0.1
0.1
0.1
Liquid Detergent
tn anhydr
Table 6- Wastewater Pollution Load

Parameter
Flow
[m3/day]
Unit
[U]
Flow
[m3/tn]
BOD
[Kg/tn]
COD
[Kg/tn]
TSS
[Kg/tn]
0il
[Kg/tn]
Pollution
load
110
tn
product
2.5
0.875
1.75
1.625
0.3
7.
Case study Unilever Thai Holding Ltd.
7.1
Introduction
Unilever is a part of Thai peoples lifestyle. It has penetrated deeper not only into their
culture but also in the commercial market within a span of 70 years in the country. So
far, as they claim, Unilevers products have been the most sold items in Thailand
market.
Currently, Unilever has about 3000 professionals in their factories located at various
parts of Thailand. Their products range from food products, cleaning products, garment
products and others that fulfill every demand of Thai lifestyle. The companys vision is
to respond every demand with new products.
Shampoo products from Unilever were introduced in Thailand in 1976 with brand
names of Clinic & Clear and Sun silk. They have been the trade leaders in Thailand
for the past 30 years or more. Product categories include anti-flat, anti-proof, straightenup, etc.
7.2
Shampoo process
Shampoos are produced by mixing all ingredients (Figure 5). Raw materials must be
prepared and weighed by weighing machine. Then they are mixed in bulk material
mixer at approximately 80oC. Some components vaporize easily such as perfume so that
they need to be mixed separately at lower temperature of 25oC in side mixer.
P a g e | 12
After premixing, ingredients are mixed properly in main mixer at about 32oC. After that,
the liquid is transferred to storage tanks before being filled into bottles or refill bags.
When production batch completes, machines are cleaned by hot water at 80oC.
Perfume (25oC)
Raw Materials
1
2
1. Pre-weight station
2. Bulk mixer
3. Side mixer
4. Main mixer
5. Bulk material storage
6. Filling machine
7. Storage tank
8. Clean in place unit
Figure 5- Shampoo process flow diagram

7.3
Wastewater management
Waste water of shampoo production in Unilever Thai Holding Ltd. varies in pH values
(Table 7). Flow rate is of 4,500m3/day. Treatment includes physical-chemical processes
as well as biological process as shown in figure 6.
Table 7- Waste water characteristic of Unilever Thai Holding Ltd.
Parameter
Influent
Effluent
IEAT Standard
5.8 11.5
78
69
2. BOD (ppm)
3,243 5,035
15 50
500
3. COD (ppm)
4,849
30 150
750
61 202
< 10
10
492 1,635
< 50
200
1. pH
4. Oil & Grease (ppm)

5. Suspended Solid (ppm)
Incoming Liquid
waste
P a g e | 13
Fat Trap
Equalization Tank
pH Tank
CO2
Coagulation Tank
Chemical
Treatment
Polymer
CO2
Alum and
CaCO3
Flocculation Tank
Sedimentation Tank
Sludge pond
pH Tank
150 ton Tank
Holding Pond
Filter Press
Sludge cake
Disposing by
WMS
Aeration Pond
Biological
Treatment
Sludge pond
Treated Water
Pond
To CETP
Polymer Mixer
Sedimentation Tank
Figure 6- Wastewater flow diagram
7.4
Solid waste management
7.4.1
Type of solid waste
a.
b.
c.
d.
7.4.2
P a g e | 14
Paper i.e. box, casket, office paper, etc.

Plastic i.e. plastic bags, sheath, bags to put raw materials, etc.
Hazardous waste i.e. batteries, fluorescent bulbs, spray bottles, etc.
Common waste i.e. yard, food waste, etc.
Waste management
a. Waste for sell consists of paper, plastics, metal container, metallic scrap and oil
waste. Annual revenue from waste selling is of 1.7 million Bath.
b. Waste for disposal by incinerator consists of scrap common waste and hazardous
waste. Disposed waste annual expenditure is 1.8 million Bath.
7.4.3
Waste collection
Waste collected to landfill site includes scrap hazardous waste which consists of
chemical contaminated container i.e. canned, fluorescent bulbs, used oil etc. Layout of
waste collection zone is shown in appendix F.
Figure 7. Waste collection

a) Contaminated container; b) Waste collection and recycle process
a. Compression
Waste from residue raw materials; wrapping up plastics, detergent, scrap of paper etc.
are compressed as shown in figure 8.
Figure 8. Compression solid waste

b. Incineration
After waste separation, they will divide waste 2 groups consisting of recycle waste and
un-reusable waste. The latter will send to incinerator inside factory or landfill outside
factory.
P a g e | 15
c. Transportation
Rubbish is both compressed and loose waste by using container as shown in figure 9.
Figure 9. Waste collecting truck and transportation

d. Contaminated container
Plastics tank size 200 L, metal tank size 200 L, fiberite and carton, used oil etc.
Revenue from contaminated container is around 1,700,000 Bath/annual.
e. Waste disposal
Waste disposal process selected in Unilever company have two ways are compound of
incineration which is situated in factory and other wastes not be able to burn going to
landfill to be buried.
Reference
APOs Demonstration Projects, 2000-2004, Asian Productivity Organization #HC 415 I 52
G74 2000-04
Assoc. Prof. Dr.Pleumchitt Rojanapanthu, Hair Care Products. Pharmacy Department,
Faculty of Pharmacy Mahidol University, Bangkok, Thailand
Chemical & Laboratory Equipment. 2005. Material Safety Data Sheet: Citric acid. (online).
Available: www.sciencelab.com [ 2007, January 28]
Eckenfelder Jr., W. Wesley, 1989, Industrial Water Pollution Control #TD745 E23 1989
Industrial Estate Authority of Thailand, Annual Report 2005 # HD 890.55 A1 I 53 2005;
Mary Ann H. Franson, Srandard methods for the examination of water and wastewater,
Fifteenth Edition, Washington DC 20005, 1981.
Metcalf& Eddy, Wastewater Engineering, Treatment and Reuse, Fourth Edition, 2003.
Michican State.
2005.
Reverse Osmosis (RO). (online). Available:
http://web1.msue.msu.edu/msue/iac/disasterresp/HomeImprovement/wq24.pdf
OPTEK.
2005.
Clean-In-Place
(CIP)
Applications
(online).
Available:http://www.optek.com/Application_Note/General/English/3/CleanInPlace_(CIP)_Applications.asp.
Stepan. 2007. Product shampoo. (online). Available:
http://www.stepan.com/en/products/formulations.asp?id=384 [2007, January 28]
Laws and Standards on Pollution control in Thailand, 4th Edition 1997.
Lecture of Air pollution (ED78.06) Dr.Kim AIT
http://en.wikipedia.org/wiki/Flue_gas_desulfurization#References
http://energyconcepts.tripod.com/energyconcepts/airenergy_tips.htm
http://hypertextbook.com/facts/2006/TatyanaNektalova.shtml
www.ab6.net/Library/AB6%20VMI%20Trimix.pdf
www.bwe.dk/fgd-ct121.html
www.cashflo.co.uk/index.html
www.epa.gov/ttn/catc/dir1/ffdg.pdf
www.osha.gov
www.pollutiononline.com/
www.stronghealth.com/services/Audiology/hearing/workplaceguidelines.cfm
www.icongrouponline.com
Appendix A
Market Potential for Hair Care Shampoo in Asia (US $ mln): 2005
Country
Latent Demand US $ mln
% of Asia
China
Japan
India
South Korea
Indonesia
Thailand
Taiwan
Philippines
Malaysia
Bangladesh
Hong Kong
Vietnam
Singapore
Burma
Sri Lanka
Nepal
North Korea
Cambodia
Papua New Guinea
Laos
Macau
Brunei
Mongolia
Bhutan
Maldives
Other
Total
796.18
539.30
385.47
135.94
113.92
71.73
67.73
53.68
39.69
35.45
32.34
26.99
19.62
11.10
10.96
5.84
3.69
2.79
2.11
1.56
1.34
1.02
0.80
0.40
0.10
0.10
2,359.86
33.74
22.85
16.33
5.76
4.83
3.04
2.87
2.27
1.68
1.50
1.37
1.14
0.83
0.47
0.46
0.25
0.16
0.12
0.09
0.07
0.06
0.04
0.03
0.02
0.00
0.00
100.00%
_________________________________________________________________________________________________
Source: www.icongrouponline.com
The Market for Hair Care

Shampoo in Asia: 2000 US $
% of
Year
mln
Globe
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2,534.52
2,487.84
2,423.90
2,353.82
2,307.42
2,359.86
2,430.69
2,504.11
2,580.21
2,659.10
2,740.90
Hair Care Shampoo (US $ mln):

Thailand 2000 - 2010
% of
% of
Year
Thailand Region
Globe
33.14
2000
75.33
32.73
2001
74.51
32.38
2002
73.14
32.06
2003
71.54
31.80
2004
70.51
32.04
2005
71.73
32.36
2006
73.35
32.68
2007
75
33.00
2008
76.69
33.33
2009
78.42
33.66
2010
80.19
2.97%
3.00%
3.02%
3.04%
3.06%
3.04%
3.02%
3.00%
2.97%
2.95%
2.93%
0.98%
0.98%
0.98%
0.97%
0.97%
0.97%
0.98%
0.98%
0.98%
0.98%
0.98%
Appendix B
Thailand: Hair Care Shampoo in 2005, US $ mln
City
Bangkok
Chon Buri
Songkhla
Nakhon
Ratchasima
Chiang Mai
Khon Kaen
Nakhon Si
Thammarat
Phitsanulok
Hat Yai
Total
World
Rank
14
435
933
US $
mln
66.78
2.48
0.76
1,150
1,167
1,217
1,361
1,629
1,966
%Country %Region %World

93.11
3.46
1.06
2.83
0.11
0.03
0.91
0.03
0.01
0.45
0.44
0.39
0.63
0.61
0.55
0.02
0.02
0.02
0.01
0.01
0.01
0.28
0.12
0.02
71.73
0.4
0.17
0.02
100
0.01
0.01
0
3.04
0
0
0
0.97
Appendix C
Raw Materials
Quantity Day
Chemical Name
Trade Name
(Kg)
PEG-150 Distearate
STEPAN PEG 6000 DS
Purpose for which it is

used
244.4
To increase the
viscosity
Sodium Laureth Sulfate
STEOL CS-230
8,976
Surfactants are surface

active ingredients,
meaning they can
interact with a surface
Disodium
Cocoamphodiacetate
AMPHOSOL 2C
8,976
To improve the
foaming characteristic.
Cocamidopropyl
Hydroxysultaince
AMPHOSOL CS-50
2,692.8
To improve the
foaming characteristic.
DL-2,4-Dihydroxy-N-(3hydroxypropyl)-3,3dimethylbutyramide,
Butyramide
Panthenol
22.4
To modify these
characteristic,
manufacturers add
fragrance and
governmentally
approved.
Citric acid
2-Hydroxy-1,2,3propanetricarboxylicacid
112.2
To adjust pH
Sodium hydroxide
Caustic Soda
112.2
To adjust pH
Sodium chloride
Salt or Sea salt
112.2
To adjust viscosity
Orange blossom 600
112.2
To add smell aromatic
4-(2-Hydroxy-1naphthylazobenzenesulfonic D & C Orange No.4

acid, Sodium salt)
244.4
To modify
characteristic, adding
dye.
Benzoic acid, 4-hydroxy,propyl ester
22.4
To preserve
Propylparaben
Appendix D
Processes Diagram
Waste water
Ground
water
DI water
Ingredient
Boiler
Weighting
Air
Pollution
Steam
heat up to
70oC
Cooling tower
Dissolve tank
Steam
Reverse
Osmosis
Mixing tank
Condense water
Hot water
Lab Test
Wastewater
QC
Holding tank
Bottle Cleaning
Drying
Waste
water
Filling
Waste water
Packing & Labelling
DI Deionized
QC Quality Control
QC
Dispatch
Appendix E
Wastewater Treatment Flow Chart
Industrial Process
Primary
Treatment
Pretreatment
Industrial wastewater
Screening
Coarse solid Disposal
Equalization &
Neutralization
Flow and pH adjustment
Floatation (DAF)
Oil and Grease &

Settled Suspended Solid
removal
Tertiary
Treatment
Secondary
Treatment
Biological Treatment (Aerobic)
Secondary
Sedimentation
Sludge
Thickener
Dewatering
Adsorption (GAC)
Landfill
Discharge
(Reuse)
Equalization &
Neutralization
Operation Process
Screening Chemical
Floatation
Flow meter and

Control device
Effluent
Water
Waste
Effluent
Water
Pressure
control
valve
Waste Water Analysis

Effluent Water
Coarse solid
Sludge
Discharge
(Reuse)
Secondary
Clarification
Primary
Landfill
Return Sludge
Activated Carbon
Effluent Water
Analysis
Air blower
Thickener
Dewatering
Sludge Cake
Flowchart of Wastewater Treatment Plant
Appendix F
Figure G: Layout of Waste management Unit
Route
Disposal Waste
Recycle Waste
Empty bin 2
Empty
container to
be sold
Empty
Bin
Truck
Parking 1
Truck
Parking 2
Empty
Bin 1
Storage Tank
Shrink
Wood
Toilet
Room
Incinerator
Building
Garden
Equipment
Room
Rest Room
SHAMPOO MANUFACURING UNIT

INTRODUCTION
Indian shampoo market is valued at Rs. 1,207 crore in year 2001-02. Shampoo market in India
has grown at compounded annual growth rate of about 10% during period 1997-98 to 2001-02.
NER market for Shampoo is valued at Rs. 33.4 crore in year 2001-02 and accounts for about
2.8% of the domestic shampoo market. NER market has grown at a CAGR of about 16% during
the period 1997-98 to 2001-02.
Based on the demand-supply gap analysis, Consumer preferences/ profile and consumption
pattern, the shampoos have significant demand in the North-East Region (NER) as well as at
national level. The following shampoo variants can be manufactured at the proposed
manufacturing unit:
(a)
Normal Shampoo
(b)
Shampoo with Conditioner
Apart from the basic classification indicated above, various other types of shampoos can be
manufactured like- anti-dandruff shampoos, herbal based shampoos, etc.
It is important to note that, in the case of shampoo manufacturing unit, with the same
infrastructure, a unit can manufacture a multiple variants without significant changes in the
equipment, tools and processes.
MARKET POTENTIAL
Exhibit 1 provides the shampoo market size in terms of all India domestic market and NER
market in year 2001-02.
Exhibit 1
Shampoo Market Size (2001-02)
Particulars
Shampoo
Total (Shampoo)
Source: AFF Research
(Unit: Rs. Crore)

All India
NER
Market Size Market Size
1,207
33.4
1,207
33.4
Hindustan Lever Limited (HLL) is the only large organised shampoo manufacturer in NER and it
is catering to the national demand from its facility in Doom Dooma in Tinsukia district in upper
Assam. All other organised players are meeting the demand of NER from sources/
manufacturing facilities outside the NE region. The estimated demand-supply gap for shampoo
products is about 34% of the total NER shampoo market (2001-02) and is valued at Rs. 11.3
crore in the year 2001-02.
The domestic shampoo market has grown at a CAGR of about 10% during the past the period
1997-98 to 2001-02. Considering that the market will grow at the same growth rate in next 10
years, the domestic shampoo market in India is estimated to be Rs. 3,000 crore in the year 201112. The NER shampoo market is estimated to grow at about 12% over next 10 years. In the year
2011-12, the NER market for shampoos is estimated to be Rs. 104 crore.
PLANT CAPCITY AND PRODUCTION TARGETS
Plant capacity and production targets for the proposed unit have been arrived at based on
following factors:
(a)
Product Mix (based on various shampoo products proposed for manufacturing)
(b)
Demand : Supply Gap (in the North East Region)
(c)
Minimum Economic Plant Size- The economic size for manufacturing for NER
region is 200-Kg batch size (Based on the discussion with large shampoo manufacturers
and various units involved in contract manufacturing).
Rated Capacity of the key equipment
The proposed plant will have a batch size of 200 kg in one shift and will operate on two-shift
basis. With annual sales realisation of Rs. 2.6 crore, the manufacturing unit will be accounting
for about 15 to 16% of the total NER shampoo market (considering the retail value of the
products as the unit will be involved in contract manufacturing) and about 45% of the demandsupply gap of NER shampoo market in year 2001-02.
It is proposed that the unit would be involved in contract manufacturing for a larger shampoo
manufacturing/ marketing company. It would primarily cater to the needs of the NER.
There is an opportunity for about 2 to 3 shampoo manufacturing units of similar size in NER.
Summing up:
Batch Size: 200 Kg. on a single batch basis (two batches per day)
Plant Capacity: 11.4 lakh bottles per annum (@ 100 ml per bottle)
Capacity Utilisation: 50% (Year 1)
Full Capacity Utilisation: Year 2
RAW MATERIALS AND INPUTS
Raw Materials
Raw materials used in the process depend upon the type of shampoo manufactured. Typically, in
any shampoo manufactured there are two types of raw materials used:
Active Ingredients (AIs) These are the chemicals used in manufacturing the
shampoo. Active ingredients used in the manufacturing process are different for different
variants. Commonly used active ingredients include emulsifying/ suspending agents like
Ammonium/ Sodium Lauryl Sulfate, Zinc Pyrithione, etc.
Others- Other ingredients include Citric Acid, Sodium Hydroxide,
Ammonium Chloride, Fragrances, Pigments, etc.
Water
The requirement of water for 200-kg batch shampoo-manufacturing unit is approximately 3,000
litres per day.
ELECTRICITY
Approximate power requirement of a 200-kg batch shampoo-manufacturing unit is 40 kW,
which can be availed from the nearest sub-station of respective State Electricity Board (SEB).
MANUFACTURING PROCESS
The flow chart for the manufacturing process is as shown below in the Exhibit 2.
The shampoo manufacturing process is a batch process. Initially, the raw material goes through a
Quality Check (QC) and if approved various Active Ingredients (AIs) and other raw materials are
dispensed for processing.
Initially, active ingredients and other raw materials are taken into a vessel known as Mixing
Vessel. In this vessel the raw materials are mixed with hot water. The water used for this
process should be De-mineralised and free from any kind of impurities. The mixing process is
carried out at a specific temperature (about 75 to 800 C).
Subsequently, the solution is taken to another vessel (known as Side Vessel) and other
ingredients like Fragrances, Pigments, etc. are added. The mixture is agitated for about 20-30
minutes to form a homogenous solution. If required, Citric Acid or Sodium Hydroxide is used to
adjust pH of water. Finally, the solution is brought back to room- temperature and is ready for
packing. Before, proceeding with packing, the solution goes through an Intermediate Process
Quality Check (IPQC) related to the efficacy of the product.
Exhibit 2
Flow Chart for Shampoo Manufacturing Process
Raw Material Sampling

QC Not Approved
QC
Test
Raw Material
Handling
QC Approved
Raw Material Dispensing
Mixing Vessel
Mixing
Raw Material
Mixing
Section
Hot
Water
Side Vessel
Mixing/ Agitation
Recover
IPQC Not
Approved
Reject
Fragrances,
Preservatives,
Dyes, etc.
IPQC
Test
IPQC Approved
Primary Packing
Product
Packing
Inspection (If required)

Product
Information
Leaflet (if
required)
Secondary Packing
QC Notapproved
Re-packing
QC
Test
QC Approved Product
Thereafter, the solution is transferred to the packing assembly through a pipeline. Normally, the
capacity of the shampoo product assembly line is dependent on the throughput of packing
machinery.
Primary Packing for shampoo products can be done in the following ways depending upon the
requirement-
Bottle/ Container packing

Sachet/ Pouch packing
After filling the shampoo in a bottle/ sachet, it is sealed appropriately. In the primary packaging
section, the various manufacturing details are printed onto the primary pack like batch number,
date of manufacturing, maximum retail price of the product, etc. as required by The Drugs and
Cosmetics Act.
Additionally, the product is sent for secondary packing, if required. In most of the cases
secondary packing is done manually. Also, product information leaflet is inserted inside
secondary packing, if required.
QUALITY, STANDARDS AND TECHNOLOGY
The plant should adhere to the norms laid out in Indian Good Manufacturing Practices (GMP)
standards under The Drugs and Cosmetics Act.
The manufacturing unit should adhere to the norms laid out in The Drugs and Cosmetics Act.
However, for the products, which are manufactured for exports markets should meet stricter
norms, for example US FDA in case of the United States, etc.
It should be noted that as the proposed unit would be involved in contract manufacturing, the
manufacturing process related technology would be provided by the principal organisation for
which the contract manufacturing would be carried out. The proposed unit would not be involved
in the basic formulations related research in the initial years.
Additionally, the manufacturing technology for NE region would not differ from other regions as
the same is not region specific. As far as the shampoo manufacturing equipment is concerned,
the process equipment is widely available in the country.
KEY ASSUMPTIONS
The plant is a single assembly line unit. The unit operates in two shifts, eight working hours per
shift
The unit operates for 300 working days in a year
The unit has a batch size of 200kg. The land is taken on a long-term lease. As per norms, fixed
charges for land development are considered at Rs 250 per sq. mtr. Additionally, lease rentals are
assumed at Rs. 3.5 per sft. The costs of the raw materials, packing materials, utilities like fuel, electricity,
etc are considered constant. Cost of various other activities like manpower is assumed to be constant. The
sales realisation from finished goods is also assumed constant for 10 years from the year of
commencement .
Sr.
Items
Value
Basis
No.
1.
Land development
Development
Assam Industrial Development
charges: Rs. 250
Corporation
per sq. mtr.
Lease Rentals: Rs.
3.5 per sft.
2.
Machinery and equipment cost
--Costs of leading machinery suppliers
inclusive of installation charges
3.
Miscellaneous fixed assets
--Industry norm
4.
Provision for contingency
10% of total capital Assumption
expenditure
5.
Raw material prices
6.
7.
8.
9.
10.
11.
12.
13.
Labour
Power and fuel
Repair and maintenance
Inventory: Raw materials (RM)
Inventory: Finished goods (FG)
Bills receivable
Creditors
Product distribution expenses
14.
Other Expenses
---
15.
Interest on working capital
9%
16.
Subsidy on plant and machinery
30%
17.
Subsidy on insurance premium
100%
18.
19.
20.
21.
Subsidy on Income Tax

Debt : Equity ratio
Interest on term loan
Margin money for working
capital
RM cost
100%
60 : 40
12%
25%
22.
FINANCIAL ASPECTS
A. Land and Site Development
Sr.
Particulars
No
.
1. Land and Site Development
Total
--------2 Months
1 Month
1 Month
1 Month
7%
Landed cost (including

transportation)
Prevalent rate in NER
Prevalent charges in NER
Industry norm
Industry norm
Industry norm
Industry norm
Industry norm
Taking into consideration average
distribution costs.
Includes cost of conversion during
manufacturing (i.e. utilities) and
variable product distribution costs
3% subsidy on working capital loan
under the Central Interest Subsidy
Scheme, 1997
Under the Central Capital Investment
Subsidy Scheme, 2007
Under the Central Comprehensive
Insurance Scheme, 2007
Industry norm
Landed cost at the factory gate

(inclusive of transportation cost and
excise duty)
Units
Unit Rate
500 sq. m.
Rs. 250/ sq. m.
Total (Rs.)
125,000
125,000
B. BUILDING AND CIVIL WORKS

Sr.
No
.
1.
Particulars
Building and Civil Work

Total
Units
400 sq. m.
Unit Rate
Rs. 4,000/ sq. m.
Total (Rs.)
1,600,000
1,600,000
C. PLANT
AND MACHINERY
Sr.
No.
1
2
3
4
5
6
7
Particulars
Quantity
(Nos.)
Manufacturing Equipment
Mixing Vessels
Side Vessel
Bottle Filling/ Packing Machine
(16 Station)
Sachet Filling/ Packing Machine
Unit Cost
(Rs.)
Total Cost
(Rs.)
1 nos.
1 nos.
1 nos.
1,500,000
1,000,000
500,000
1,500,000
1,000,000
500,000
1 nos.
500,000
500,000
Utilities/ Misc. Other Equipment

Electrification, Control Panels and
Cabling, Transformer, etc.
Water Plant, Generation and
Distribution
Steam Generation Units,
Compressors
1,000,000
2,000,000
600,000
Total Machinery, Utilities and

7,100,000
Equipment
Note: Above mentioned equipment is indicative for the proposed shampoo- manufacturing unit
D. MISCELLANEOUS FIXED ASSETS

Sr. No.
1
2
3
4
Particulars
Furniture and Fittings
Office Equipment
Fire Fighting Equipment
Cost of Tube-well
Total Misc. Fixed Assets
Total (Rs.)
25,000
100,000
50,000
20,000
195,000
E. PRELIMINARY AND PRE-OPERATIVE EXPENSES

Sr. No.
Particulars
1
Detailed Techno-economic Feasibility Study
2
Loan Processing Fees
3
Establishment expenses
Total Preliminary & Preoperative Expenses
Total Cost (Rs.)

100,000
10,000
200,000
310,000
F. PROVISION FOR CONTINGENCY

Provision for contingency- @ 10% of the total capital investment
OPERATING COST
A. RAW MATERIAL
Raw materials consumed for manufacturing any shampoo are of two types-
Active Ingredients (AIs)

Others (like binding materials, fragrances, pigments, etc. used in manufacturing process)
Sr. No.
Particulars
Units
Value
1
Average cost of raw material
Rs. per Kg. 110
2
Raw materials consumed per batch
Kg.
200
3
Number of batches per year
Nos.
600
Total Raw Materials Consumed per Annum
Rs.
13,167,000
Note: Above raw material consumption pattern is calculated at 100% capacity utilisation of the
manufacturing unit working for 300 days per annum and two shifts per day basis.
B. LABOUR
Sr.
No.
Particulars
Qualification
Direct Labour
1 Factory Manager
2
3
4
5
6
7
Production Manager
Chemists
Engineer and Technicians
Skilled Workers
Semi-skilled and Un-skilled Workers
Other Misc. Personnel
Total Direct Labour Cost
Indirect Labour
8 Finance Manager
BE/B.Tech +
MBA/MMS
BE/B.Tech
BE/B.Tech
BE/B.Tech
BE
Matriculate
Nos.
Salary
Annual
per
Manpower
Month
Cost
(Rs.)
(Rs.)
20,000
264,000
1
2
4
2
8
8
26
15,000
12,000
10,000
5,000
3,000
2,500
198,000
316,800
528,000
132,000
316,800
264,000
2,019,600
MBA/MMS + 1
15,000 198,000
CA
9 Accountant
CA
1
10,000 132,000
10 Business Development Executives Graduate
2
8,000
211,200
11 Security Personnel
2
3,000
79,200
Total Indirect Labour
6
620,400
Total Cost of man-power
32
2,640,000
Note: (1) Manpower cost also includes Perks @ 10% of annual salary
(2) There is no specific requirement of other highly skilled and specifically trained manpower apart from
the normally available qualified manpower as mentioned above at the proposed manufacturing location.
C. POWER AND FUEL

Particulars
Units
Consumption Unit Cost Annual Cost

per day
(Rs.)
(Rs.)
Electricity (40 kW)
Units 527
6
948,000
Furnace Oil
Litres 75
8
180,000
Water
Litres 3,000
0
0
Total
1,128,000
Source: It is assumed that ground water is tapped through tubewell and hence water is considered free of
cost.
D. OTHER EXPENSES
Sr. No.
Particulars
Total Cost
(Rs.)
Sr. No.
Particulars
Total Cost
(Rs.)
Fixed
Repairs and maintenance
Advertising and promotion expenses
Lease rent for land
Office Administration and other misc. expenses
Professional and legal fees
Bank charges and commissions
Printing and stationary
Insurance and taxes
Total other expenses
E. Total Working Capital
1
2
3
4
5
6
7
8
Particulars
Raw Materials
Packing
Materials
Finished Goods
Bills Receivables
Outstandings
Norms
2 Months of raw materials
2 Month of packing materials
609,750
500,000
210,000
100,000
300,000
20,000
100,000
100,000
1,939,750
Total (Rs.)
2,194,500
790,020
1 Month of cost of production

1,711,710
1 Month of sales value
2,194,500
1 Month of Raw Material and Packing Material 1,492,260
Total
5,398,470
Note: 1. Working capital requirement indicated above is at 100% capacity utilisation.
2. Margin money @ 25% of total Working Capital Rs. 1,349,618
CAPITAL INVESTMENT
The capital investment required for the project is Rs.1.16 crore. The break-up of the capital
investment is indicated in below.
Sr. No.
1
2
3
4
5
6
7
Particulars
Total Value (Rs.)
Land and Site Development Cost

Building and Civil Works
Plant and Machinery
Misc. Fixed Assets
Preliminary and Pre-operative Expenses
Provisions for Contingency
Margin Money for Working Capital
Total Cost of the Project
Means of Finance
Total Cost of Project
Promoters Equity (40%)
Loan from Bank/FI (60%)
125,000
1,600,000
7,100,000
195,000
310,000
933,000
1,349,618
11,612,618
Rs. 11.61 lakhs

Rs. 4.64
Rs. 6.97
Note - * Transportation subsidy is added to Gross Profit while calculating the profitability of the unit
FINANCIAL ANALYSIS
A. Cost of Production
Sr. No.
1
2
3
4
5
Particulars
Total (Rs.)
13,167,000
4,740,120
2,019,600
1,128,000
364,397
21,419,117
Raw materials
Packing materials
Administrative overheads
Other overheads
Interest on working capital
Total cost of production
Note: Cost of production indicated above is at 100% capacity utilisation.
B. Turnover
Annual sales realisation of the manufacturing unit with the assumed product mix is illustrated
below. Sales realisation at 100% capacity utilisation is around Rs. 2.63 crore.
Sr. Particulars
No.
No. of
Bottles
(Nos.)
Sales
Realisation
per Bottle
(Rs.)
Total Sales
Realisation
(Rs.)
Shampoo (Various variants)

1,140,000
26,334,000
Total
1,140,000 23.1
26,334,000
Note: For simplicity purpose all the sales mentioned above are in bottle of 100-ml weight
C. Profit and Loss Statement for 10 Years
(Unit: Rs. lakhs)
Particulars
Capacity Utilisation
Sales Realisation
Operating Costs
RM and PM Costs
Formula
A
B
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7
50% 100 100% 100% 100% 100% 100%
%
110
263 263 263 263 263
263
75
179
179
179
179
179
179
Labour Costs
20
20
20
20
20
20
20
3. Other Overheads
Interest on Working
Capital
Gross Profit incl.
Transport Subsidy
Interest
Depreciation
PBT
Tax
PAT
Cash Profit
GP Margin
NP Margin
6
2
11
4
11
4
11
4
11
4
11
4
11
4
C=A-B
49
49
49
49
49
49
D
E
F=C-(D+E)
G
H=F-G
I=H+E
J=C/A
K=H/A
8
12
-12
0
-12
0
7%
-11%
8
10
31
0
31
42
19%
12%
7
9
34
0
34
42
19%
13%
6
8
36
0
36
43
19%
14%
5
7
37
0
37
44
19%
14%
4
6
39
0
39
45
19%
15%
3
5
41
0
41
46
19%
15%
Note:1. Figures indicated above are rounded-off

2. Annual sales values indicated above are after taking into consideration opening and closing stocks
Return on Investment (ROI): 32%

D. Breakeven Analysis
The breakeven analysis for the proposed shampoo-manufacturing unit is indicated below. The
unit achieves operational breaks-even in the first year of operations.
Particulars
Capacity Utilisation
Sales Realisation
Variable Cost of Sales
Direct Material
Unit
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
Yr 6
Yr 7
(%)
50%
Rs. lakhs 110
100% 100% 100% 100% 100% 100%

263 263 263 263 263 263
55
132
132
132
132
132
132
20
47
47
47
47
47
47
11
11
11
11
11
11
20
20
20
20
20
20
20
Interest on Working
Capital
Total Variable Costs
Rs.
lakhs
Rs.
lakhs
Rs.
lakhs
Rs.
lakhs
Rs.
lakhs
Rs. lakhs
102
214
214
214
214
214
214
Contribution
Rs. lakhs 7
49
49
49
49
49
49
12
12
12
12
12
12
27
32
31
31
30
29
28
168
263
163
263
159
263
154
263
150
263
64%
62%
60%
59%
57%
Packing Cost
Conversion Cost
Direct Labour
Fixed Costs
Other overheads (excl.
Repairs and Maintenance)
Repairs and Maintenance
Manpower Cost
Interest on Term Loan
Total Fixed Cost
Break Even Point
Actual Sales Realisation
Break Even Sales at % of
Capacity
Rs.
lakhs
Rs.
lakhs
Rs.
lakhs
Rs.
lakhs
Rs. lakhs
Rs. lakhs 405 173

Rs.
110 263
lakhs
%
154% 66%
Note: 1. Figures indicated above are rounded-off

2. Annual sales values indicated above are after taking into consideration opening and closing stocks
SOURCE OF RAW MATERIALS AND PACKING MATERIALS
The raw materials that are required for manufacturing shampoo products are not locally available
in NER. In case of the herbal shampoos, certain raw materials like Heena and other herbs are
available in NER (in hilly states like Meghalaya, Arunachal Pradesh, etc.) through the
Government approved agencies. The closest source for procuring raw materials (apart from
herbal ingredients) is Hyderabad or Delhi. As far as packing materials are concerned, few
vendors are present in NER but they are relatively small in size.
Additionally, the raw materials and packing materials can be procured from West Cluster
(Mumbai, Ahmedabad, etc) but the cost of transportation will increase substantially.
Mentioned below are few sources of raw materials-
EI Dupont India Limited

Sahar Plaza Complex, 7Th Floor, Bandra (E), Mumbai- 400067
Tel: +(91)-(022)-28390770
Rolex Lanolin Products Ltd.
52/58 Babu Genu Road, 24-26 Jivraj Shamji Building, Mumbai- 400002
Tel: +(91)-(022)-22012251, 22017395
Fax: +(91)-(022)-22015990
Silicones Industries (India) Limited
502, Arcadia Building, Nariman Point, Mumbai-400021
Tel: +(91)-(022)-22855033, 22855034
Fax: +(91)-(022)-22821779
Standard Silica Pvt. Ltd.
Industrial Assurance Building, 5Th Floor, J. Tata Road, Churchgate, Mumbai- 400020
Tel: +(91)-(022)-22821113
Suru Chemicals and Pharmaceuticals
11 Sona Udyog, P. P. Road, Andheri (E), Mumbai- 400069
Tel: +(91)-(022)-28378500
Fax: +(91)-(022)-28376321
Email: info@suru.com
India Dye Chem
D 9, Ground Floor, Rana Pratap Bagh, G. T. Road, Delhi- 110007
Tel: +(91)-(011)-27244736
Fax: +(91)-(011)-27459097
Jayant Vitamins Limited
12, Bhargava Lane, Civil Lines, Delhi- 110054
Tel: +(91)-(011)- 22911653, 22519414
Mentioned below are few sources of packing materials-
Anil Tubes
524 Sandharst Building, S V P Road, Opera House, Mumbai- 400004
Tel: +(91)-(022)-23896559
Fax: +(91)-(022)-23802286
Email: anilchem.mktg@vsnl.net.in
Caravan Packaging Limited
G 3, Hind Service Estate, Off. Ranade Road, Shivaji Park, Mumbai- 400028
Tel: +(91)-(022)-24467704
Fax: +(91)-(022)-24368477
Vora Packaging Pvt. Ltd.
467/A, TV Indl. Estate, S. K. Ahire Marg, Kings Circle, Mumbai- 400019
Tel: +(91)-(022)-24078193, 24095829
Fax: +(91)-(022)-24078219
Email: sales@vorapack.com
Classic Crown & Closures
21, Crescent I E, Kherani Road, Saki Naka, Andheri (E), Mumbai -400072
Tel: +(91)-(022)-28522859
SOURCE OF MACHINERY AND EQUIPMANT
Most of the machinery for manufacturing shampoo products is manufactured locally. Most of the
machinery manufacturers are based in Mumbai, Ahmedabad. Smaller clusters for machinery
manufacturers include Delhi, Haryana, Kolkata, etc.
PROCESS EQUIPMENT
Autopack Machines Pvt. Ltd.
101 C, Poonam Chambers, Dr. A. B. Road, Worli, Mumbai- 400018
Tel: +(91)-(022)- 24974800, 24934406
Fax: +(91)-(022)- 24964926
Email: autopack@bom3.vsnl.net.in
Packing Machinery Pvt. Ltd.
M/ Celler, Ambekar Nagar, G. D. Amsedkar Road, Parel, Mumbai- 400012
Tel: +(91)-(022)- 24162551
Fax: +(91)-(022)- 24168516
Spanpak Systems
B 136, Ghatkopar, Industrial Estate, LBS Marg, Ghatkopar (W), Mumbai- 400080
Tel: +(91)-(022)- 28597620
Ambica Engineering Works
Plot NO. 1804, Phase III, GIDC Industrial Area, Vatva, Ahmedabad, 380045
Tel: +(91)-(079)-22744262
Fax: +(91)-(079)-22744262
Cadmach Machinery Co. Pvt. Ltd.
Plot No. 3604/ 05, GIDC Phase IV, Vatva, Ahmedabad, 382445
Tel: +(91)-(079)-25831491
Emkey Engineering Works
B 33, DDA Shed, Okhla Industrial Area, Phase II, New Delhi- 110020
Tel: +(91)-(011)- 25415882
Mitsubishi Heavy Industries Limited
1St Floor, Gopal Das Bhawan, 28- Barakhamba Road, New Delhi- 110001
Tel: +(91)-(011)- 23354465
Swastik Industries
A 76, Clock Tower, Hari Nagar, New Delhi-110064
Tel: +(91)-(011)- 27538203
AUXILIARY EQUIPMENT
Thermax (India) Limited
Thermax House, 4, Mumbai-Pune Road, Shivajinagar, Pune- 411019
Tel: +(91)-(020)- 25512122
Fax: +(91)-(020)- 25512242
Website: www.thermaxindia.com
Atlas Copco (India) Limited
Sevanagar, Dapodi, Pune- 411012
Tel: +(91)-(020)- 27146416/17
Fax: +(91)-(020)- 27146637
Website: www.atlascopco.com
Aquatech India Limited
Plot No. 3, Baner Park, Near D. P. Road, Aundh, Pune- 411007
Tel: +(91)-(020)- 27292103, 27291104
Fax: +(91)-(020)- 7291805
Website: www.aquatech.com
Email: asa@aquatech.com
Alfa Laval (India) Limited
Shivajinagar, Pune- 4110112
Tel: +(91)-(020)- 27147721
Fax: +(91)-(020)- 27147711
Ion Exchange, Mumbai
Tiecicon House, Dr. E. Moses Road, Mahalaxmi, Mumbai- 400011
Tel: +(91)-(022)- 24939520/23/25
Fax: +(91)-(022)- 24938737
Website: www.ionindia.com
Email: ho.commun@ho.ionxchng.co.in
Courtesy : NEDFi

Development of Standard Procedure for Shampoo Production

121 . . 10600
0898912824, 024397344
E-mail: oung_22@hotmail.com
Right First Time

(Failure Mode and Effect Analysis, FMEA)

(Cause and Effect
diagram)

Right First Time
4 1.
2. 3.
4.

Right First Time

Right First Time
60.12 78.24
151 116
23.18
Abstract
The purpose of this study is to develop
standard procedure for shampoo products in
cosmetic manufacturing for the improvement in
term of Right First Time. The scope of this study
is focused on soft, clean and beauty shampoo
production, which is the large volume shampoo
production of the case study company that
starts from raw material preparation step until
discharging to storage tank. Failure Mode and
Effect Analysis (FMEA) and Cause and Effect
diagram are used as quality tools for problem
identification and analysis in shampoo
production. Based on this study, it was found
that there were 4 major problems that impact to
production Right First Time. They include 1.
quality of raw material 2. standard procedure

deficiency 3. inaccuracy of load cell in main
mixer 4. human error. These problems lead to
Right First Time and production batch time
problem which affect to production. The result of
analysis leads to the development of standard
procedures which serve as quality control for
shampoo production. This implementation can
help improve Right First Time and production
batch time in the shampoo production. The Right
First Time can improve from 60.12% to 78.24%.
Moreover, production batch time also can be
reduced from 151 minutes to 116 minutes which
is 23.18%.
develop their competition edge to compete with

international competitors and also the local one.
Failure Mode and Effect Analysis (FMEA)
is studied in this study as a tool to help
developing process standard in cosmetic
manufacturing to improve production
management in terms of quality, cost and time.
Production process will be analyzed to identify
potential failures that affect to the product quality
and process performance. Cause and effect of
that failure including process control will also be
identified and evaluated. Data collection will be
considered and apply to achieve process
standard of production.
1. Introduction
At present, the competition in many
businesses is very intense. Companies have to
find the way to gain more market share and
profits to stay in the business. Manufacturing
efficiency improving including production cost
reducing plays vital part on any industries.
Cosmetic industry is also one of them that can
not survive without efficient production
management. Since we live in global village now,
process improvement is even more significant
important. China and India are fast developing
country and they have quite low cost on labor
and many resources to develop their businesses.
As a result, companies in Thailand need to
2. Statement of the problem

From cosmetic plant data, it can achieve
the Right First Time only 60.12% for Shampoo
products which is relatively low. Viscosity,
pH, %active, density, color standard are product
parameters that must be controlled to get the
right product quality and they have to be
adjusted several time before getting the proper
specification. This also affect to the production
batch time since it takes a lot of time per each
adjustment. Consequently, it impacts to the
productivity and efficiency of cosmetic plant.
Production batch time of shampoo products
should be improved as well since shampoo is
the main product of this plant. Batch time
reduction can be a huge benefit to the factory.

Energy cost such as electricity, water and steam
will also reduce as batch time reduces as well.
Since Right-First-Time problem can
affect to the production batch time problem, it
should be the focus improvement of this
research. In addition, there are other problems
occurred in the cosmetic plant such as machine
break down. However, it does not influence too
much on the factory.
Standard procedure is needed to be
developed for control raw material specification
and mixing process of shampoo production to
improve this production Right First Time.
Table 1: Percentage of Right First Time of shampoo
products
Table 2: Production batch time of shampoo products
3. Research Methodology
Process FMEA is applied to eliminate or
minimize all possible causes that have impact to
Right First Time problem in shampoo production.

Process FMEA Table will be used in
documentation and facilitating the FMEA
process. The FMEA concept is team
approach, so the FMEA team must be crossfunctional and they must be willing to contribute
to the project. The team in this study consists of
production engineer, process development
supervisor, product development supervisor and
quality assurance supervisor.
FMEA team members will brainstorm all
potential causes of failure for each process step
of shampoo production process that affect to
Right First Time problem. This process will be
facilitated by using process flow chart of
shampoo production. Cause and Effect diagram
technique will be used to categorize the teams
ideas. The ideas would be classified into 5
categories of cause and effect diagram
material, man, measurement, method and
machine. The information from this analysis will
be used to fill in the columns of the process
FMEA table in relationship to the potential effects
of failure and current process control.
Recommended actions need to be filled in
process FMEA table. Responsibility and Target
Completion Date is also important when
assigning to appropriate team member.
Table 3: Severity evaluation criteria
Table 4: Occurrence evaluation criteria
Figure 1: Process flow chart of shampoo production

Table 5: Detection evaluation criteria
Figure 2: Cause and Effect Diagram
Since the case study company has their

own evaluation criteria about the score of
severity, occurrence and detection, the author
will use those criteria in rating the score in order
to prevent the confusion when implement this
FMEA process to the case study company.
The FMEA team agrees to pursue

failures on RPN value > 18 based on maximum
score for the RPN is 125 (5*5*5 from severity,
occurrence and detection). In addition, RPN
score at 18 come from acceptable level of
severity at 2, occurrence at 3 and detection at 3.
It means that the RPN of failure that has higher
score than 18 must be addressed and taken into
consideration to find solution and improvement.
Table 6: Example of process FMEA for shampoo production
Table 7: Summary of process FMEA that the RPN value

is higher than 18
Table 8: Summary action for FMEA project

Production
From Summary of process FMEA that the RPN

value is higher than 18, 15 items of high-risk
area are addressed. Therefore, the FMEA team
can have meeting to take proper actions to find
the solutions for those failures. At last, the action
plan is created for each related departments. In
addition, items and standard procedure column
of action plan in table 8 are represented as the
action to improve the failures in table 7 and
standard procedure generated to solve the
problems respectively.
Quality Assurance
Process Development
After the recommended actions are finished, the

FMEA team implements them in shampoo
production. The team collects the data of Right
First Time problem in shampoo production and
compares with before implement the
improvement.
4. Results
Prior to FMEA implementation, shampoo
production in this case study achieves the Right
First Time only 60.12% of total batches. After the
FMEA implementation, this shampoo production
can achieve the Right First Time target at
78.24% of total batches. Moreover, production
batch time also reduce from 151 to 116 min after
the implementation. Production can save time
from quality control time because of higher Right
First Time achievement. This will lead to batch
time reduction for shampoo production. As a
result, this company can save production batch
time for 23.18% when compare with prior to the
implement
starting.
Therefore,
this
implementation can help improve Right First
Time and production batch time in the shampoo
production. This will lead to reduction of
production cost and help the company has more
competitive power to compete in the market and
gain more profit.
% Right First Time before implementation
39.88%
60.12%
Right First Time
Non- Right First Time
% Right First Time after implementation
21.76%
78.24%
Right First Time
Non- Right First Time
Figure 3: Comparison of Right First Time between

before and after the implementation
Figure 4: Comparison of production batch time between

before and after the implementation
5. Conclusion
Main problems of shampoo production
are quality of raw material and standard
procedure deficiency which can be controlled
and improved by these new standard

procedures.
The standard procedure for shampoo
production would be summarized as following.
Surfactant
1. This raw material needs to be completely
dissolved in order to let shampoo has its
fully cleansing property, so the
procedure to ensure surfactant
dissolution is generated.
2. In order to improve Right First Time of
shampoo production, surfactant must be
added at 12.2%. Standard procedure
for percentage of active measurement
for surfactant would help team to know
amount of surfactant that would be
added in the production.
Preparation of suspending agent
The preparation process of suspending
agent must cover an alternative material
problem. Since the alternative material is
quite hard to dissolve in the mixer, new
standard procedure for preparing this
material has to be generated.
pH modifier
Standard procedure for % pH modifier
measurement would help control pH
modifier specification and improve Right
First Time.
Functional material
This material will help shampoo provide

conditioning effect to consumer. The
right amount of functional material can
be added into main mixer by new
standard procedure.
Viscosity modifier
1. To improve Right First Time for shampoo
production, viscosity modifier needs to
be controlled at 25%. The new mixing
procedure can help team to control this
material.
2. The procedure for percentage of
viscosity modifier measurement is
generated.
Amount of water
Amount of water for flushing in the
shampoo production can lead to
inconsistent of %AI in shampoo batch.
Therefore, team will pre-weigh water for
flushing in shampoo batch follow by new
standard procedure instead of flushing in
different amount as operators usually do.
From implementing these standard procedures,
there is improvement in term of production Right
First Time and production batch time. Base on
the result, Right First Time of this shampoo
production has increased from 60.12% to
78.24%. Moreover, Production batch time is also
reduced from 151 minutes to 116 minutes which
is 23.18% batch time reduction. From these
results, Right First Time and production batch

time have improved significantly when compare
with prior to the implementation.
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ASIAN INSTITUTE OF TECHNOLOGY

SCHOOL OF ENVIRONMENT, RESOURCES AND DEVELOPMENT

Course: ED 78.20 Industrial Waste Abatement and Management

Ms. Cao Thi Van Hau

Date of submission: 26 April, 2007

Cosmetic Market in Thailand

The Worldwide Market Potential of Shampoo

Shampoo production process

Waste Treatment Practices

Environmental issues related to shampoo production

Case study Unilever Thai Holding Ltd.

Solid waste management

Type of solid waste

Cosmetic Market in Thailand

agents, i.e., wetting agent). Shampooing is frequently followed by conditioners which

The Worldwide Market Potential of Shampoo

North America & the

Source: Philip M. Parker, INSEAD, 2005

Europe & Middle East

North America & Caribbean

Figure 1: Worldwide market potential (US $ mln: 2005)

World Market Trend (2000-2010)

Percent (US $ mln)

Market Potential for Hair Care Shampoo in Asia:2005

Figure 3: Comparison of shampoo market in Asia

Shampoo production process

Surfactants, including five categories (primary anionic - basic, secondary

Thickeners and foam stabilizers remain viscous to avoid precipitation and

Shampoos are manufactured by simple blending in a stirred vessel. Sometimes a

Chemicals 21.6 tons/day

Deionized water 23.3 m3/day

Product 43.5 m3/day

Losses 0.73 tons/day

Wastewater 59.8 m3/day

Figure 4- Mass balance diagram for shampoo production

3. Waste Treatment Practices

Secondary treatment is designed to remove BOD associated with dissolved organic

Table 3- EOP Technologies for the Air Pollution Abatement

Air Pollution Control Device

Paper and Plastic

Mainly in Shampoo production process, noise is produced by dissolve tanks, boilers,

Environmental issues related to shampoo production

Treated water using newest inventions like titanium micro-dispersion water

Soap from kettle

Table 6- Wastewater Pollution Load

Case study Unilever Thai Holding Ltd.

Figure 5- Shampoo process flow diagram

4. Oil & Grease (ppm)

150 ton Tank

Figure 6- Wastewater flow diagram

Solid waste management

Type of solid waste

Paper i.e. box, casket, office paper, etc.

Figure 7. Waste collection

Figure 8. Compression solid waste

Figure 9. Waste collecting truck and transportation

Latent Demand US $ mln

The Market for Hair Care

Hair Care Shampoo (US $ mln):

%Country %Region %World

STEPAN PEG 6000 DS

Purpose for which it is

Sodium Laureth Sulfate

Surfactants are surface